Insider Tips - Weekly Stock Market Report - Week August 18, 2025

Weekly Insider Tips - August 18, 2025

Market Overview

This week, the markets have shifted decisively from cautious to optimistic. Last week, we were sitting on four red lights, but today we’ve moved to three greens and just one red—a strong signal that we’re trending toward a bullish environment. My system tells me: when we go green, that’s when it’s time to get involved in new opportunities.

NASDAQ Composite: Recently pushed to all-time highs before a minor pullback. The chart remains strong and healthy, showing strong institutional buying support.
S&P 500: Tracking closely with the NASDAQ—strength across large caps and growth names.
Dow Jones: Bounced perfectly off the 50-day moving average two weeks ago and has now notched new highs.
NYSE Composite: Broader but slightly weaker index, though still trending positively.
Volatility Index (VIX): Moving down sharply, signaling fear is coming out of the market. This tells us investors are pulling money off the sidelines and putting it to work.

Big Picture: The market backdrop remains bullish, with broad participation and falling volatility—a recipe for continuation higher, though profit-taking and short-term pullbacks are always possible.

Technical Analysis & Stock Highlights

Semiconductors & AI Leaders

AMD: Forming a classic “cup” pattern. Recently hit new highs before pulling back slightly—aligned with sector strength.
NVIDIA: Has entered a profit-taking phase after a monster run, but the longer-term trend remains intact. Still the flagship AI stock.
TSMC (TSM): Following the same semiconductor momentum, riding global demand for chips.

Takeaway: Chips and AI remain the dominant growth theme in this market. They may consolidate, but leadership is clear.

Big Tech

Alphabet (GOOGL): Riding AI enthusiasm with Gemini. Now sitting in a buy zone with momentum on its side.
Microsoft (MSFT): A textbook example of strength. After consolidating for nearly a year, it broke out and has been steadily trending higher. Fundamentals—growth in revenue, EPS, and leadership—support the move.

Takeaway: Big tech continues to anchor portfolios. These are steady, leadership-quality stocks that institutions rely on.

High Volatility & Speculative Plays

MicroStrategy (MSTR): A wild ride—recently down $100 off its highs. My approach: I own the asset and sell covered calls weekly to generate steady income. For income investors, this strategy transforms volatility into cash flow.
Riot Platforms (RIOT): Despite Bitcoin making new highs, this miner is stuck in a long consolidation between $7 and $16. Needs a breakout for new momentum.
Palantir (PLTR): A beautiful chart if you caught it early. Extended now, so caution is warranted. Could consolidate before the next leg higher.
AppLovin (APP): Last year’s top performer. Consolidating gains and now forming an early-stage base—potential entry zone emerging.
Speculative AI Cloud Stock: Classic cautionary tale. Ran from $40 to $187 before reversing hard on high volume. With no clear support below $100.80, it could easily revisit $65. Lesson: chasing extended names can be dangerous—always respect risk and volume reversals.

Takeaway: Growth names can deliver massive gains, but also sharp reversals. Income investors can mitigate risk by layering covered calls, while traders must respect technical levels.

Key Lessons & Takeaways

Green Light Signals Opportunity: My framework shows markets turning bullish. This is when we look for new setups.
Volatility is Declining: A falling VIX = fear leaving the market = more fuel for the rally.
Leadership Matters: Focus on sectors showing strength—chips, AI, and big tech are where institutional money is flowing.
Income Strategies Pay in All Markets: Covered calls provide steady weekly income even on volatile names like MicroStrategy.
Discipline > Emotion: Extended stocks can tempt you in, but reversals are brutal. Technicals and risk management must guide decisions.
Mindset is 90% of the Game: It’s not just about charts—it’s about avoiding emotional mistakes when trades go against you.

Conclusion

We’ve officially moved from yellow toward green, signaling opportunity and optimism in the markets. Major indexes are near all-time highs, volatility is collapsing, and leadership sectors like semiconductors and AI continue to dominate. While the trend is up, traders must be cautious of chasing extended stocks and always manage risk.

Current Market Condition:

Yesterday we officially shifted to green, which is always an exciting signal in my system. Last week we were sitting on four red lights, but now we’ve flipped to three greens and just one red, showing real momentum building. The NASDAQ and S&P 500 are pushing near all-time highs, the Dow has broken higher after bouncing off its 50-day moving average, and even the broader NYSE Composite is holding strong. At the same time, the VIX is dropping, which means fear is leaving the market and money is coming off the sidelines and back into stocks. All of these signals point to a bullish environment, and as I always remind my students—when we go green, that’s the time to start looking at new investments.

Stock Tip of the Week:

🚀 AppLovin Breaking Out? My Trade Setup Revealed

AppLovin is setting up a strong technical pattern, and I break down exactly how I’m approaching the trade. In this week’s video, I share the chart, the setup, and my strategy for playing it.

🚦 Green Market Alert! TREE, AII, APP & GOOG Setups 📈

With the market turning green today, I break down what I’m watching closely: TREE, AII, APP, and GOOG. See the setups, chart patterns, and my approach to these key stocks