Insider Tips - Weekly Stock Market Report - Week August 19, 2024

Weekly Insider Tips - August 19, 2024

In this week’s stock market update, I’m pleased to report that the market has rebounded after a chaotic period. While the market has turned green and shows positive momentum, I caution that it may not rise as quickly as some expect. We’re seeing strong signals in the NASDAQ, S&P 500, and Dow Jones, but it’s essential to stay vigilant. I’ll discuss individual stocks like Apple, NVIDIA, Tesla, and Meta, offering insights and technical analysis to help you navigate this dynamic market. Remember, this is research and education, not investment advice—do your homework before making any moves.

Technical Analysis & Market Trends: The market has experienced a significant recovery after a turbulent few weeks, largely influenced by the unwinding of the Japanese yen carry trade. The overall sentiment is positive, with multiple indicators suggesting a bullish trend. For instance, the NASDAQ has bounced off the 200-day moving average and is now slightly above the 50-day moving average, indicating a potential short-term trade between these levels. However, while the long-term trend might push the NASDAQ up to around 19,100, I’m cautious about the strength of this rally, as the market has been rising in anticipation of the Fed’s moves all year.

Similarly, the S&P 500 is comfortably above its 50-day moving average, with a target of 5669 in sight, although I’d prefer to see more volume to confirm this trend. The Dow Jones is also showing strength, heading toward the 41,000 level, an all-time high. The New York Stock Exchange appears strong as well, recovering nicely off recent lows and approaching its all-time high of 18,841.

A notable event this week was the VIX, or the “panic index,” which experienced an unprecedented spike from 20 to 65, followed by a dramatic correction back to 14.78. This volatility indicates a significant shift in market sentiment, which could impact future trading decisions.

Individual Stocks:

Apple (AAPL): Apple remains a strong performer, recently bouncing back to $226 after briefly dipping to $200. The stock has a relative strength rating of 88, indicating robust performance. With the upcoming iPhone 16 release in September, I expect Apple to potentially reach $260-$270, though it may not happen in a single week.
NVIDIA (NVDA): NVIDIA has been a high-flying stock, but with earnings coming up, caution is advised. The stock is currently above its 50-day moving average but lacks the volume needed for a confident rally. Traders should consider protective strategies like buying puts or selling deep in-the-money calls to mitigate risk during earnings season.
Tesla (TSLA): Tesla has been a challenging stock to trade, but recent activity shows it back above the 50 and 200-day moving averages. While the volume isn’t impressive, this could signal a potential recovery.
CrowdStrike (CRWD): This stock has had a rough ride, halving in value from $400 to $200. While it’s showing some recovery, the low volume suggests a lack of confidence in the bounce. I advise against trying to catch the bottom here, as the stock could continue to slide.
Meta (META): Meta is at a critical breakout point, with a potential to push higher if it clears the $543 level. However, caution is warranted as the stock is in a late-stage base, which historically has lower success rates.

Key Takeaways:

The market is showing positive momentum, but caution is needed as the rally may not be as strong as expected.
Technical indicators suggest potential gains in major indices like the NASDAQ, S&P 500, and Dow Jones, but volume remains a concern.
Individual stocks like Apple and Meta show promise, while caution is advised for NVIDIA, Tesla, and CrowdStrike due to potential volatility and uncertain trends.

Conclusion: In summary, the market has entered a green phase with positive momentum across several indices. However, it’s essential to approach this rally with caution, as the strength of the move may not be as robust as some anticipate. By carefully analyzing individual stocks and market trends, traders can make informed decisions, but it’s crucial to stay vigilant and protect against potential downside risks. Remember, this is for educational purposes—always do your own research before making any investment decisions.

Current Market Condition:

The current market condition is GREEN. The rule in our systems is you MUST buy/add something at the beginning of a Green market. Hopefully you have your lists ready!

Stock Updates:

In my latest video, I share the big changes that are continuously happening, and if you are not prepared, you will definitely be left behind, especially when it comes to your retirement. Take a look at my favorite strategy to prepare for retirement, options.

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Podcast this Week:

In today's episode, we've got a special treat for you—John Bianchi, the founder of STR Search and an expert in Airbnb investments. John's successfully directed over $70 million into high cash flow Airbnbs across the country, with a 100% success rate across more than 150 properties.

We'll dive into the fascinating world of Airbnb, from finding profitable properties to navigating the challenges in the industry. So let's get right into it.