🗓️Weekly Report: Key levels & Trade Ideas

4월 15일

GENERAL MARKET REVIEW
Concerns over a potential military attack by Iran on Israel triggered a gap down in the market at the beginning of trading on Friday. Following these events, there was a surge in oil prices, which then led to widespread sell-offs across the board. Virtually all stocks took a hit, with growth stocks experiencing declines ranging from $2 to $72, notably including MicroStrategy MSTR .

For this evening's analysis, we'll begin by examining the charts of the Nasdaq-100 (QQQ) and the S&P-500 (SPX).
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SPX-500
The SPX has been movig lower and plundged to the 50-day Simple Moving Average (red) on Friday. Holding this line could lead to an oversold bounce on the market.

However, should a broader market selling start, then it is very possible that we test the 5000 psychological level or even the 4700 level that was rejected in August 2023 and February 2023.

💡Another interesting fact SPX has created 22 all time highs this year (2024) and returned more than 25% over the past five months and has gone more than 1 year without experiancng a 1 day decling more than -2%. This is the 6th longest such streak since 1965. If you are wondering when are the other times:
2007, 1986, 1996, 2018, 1993. On average the index makes only 29 consecutive trading days without a 1 day that has more than -2% decline💡

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QQQ
Very similar as it is clinging on the 50-day Simple Moving Average. QQQ and SPX are holding much better than the IWM or DIA, which have been consistently underperforming on their Relative Strength against the SPX.

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META
Meta has earnings on 24April (Wednesday). It has been holding very well and is a constructive pattern. You can see a triangle forming. Pay attention to the volume pattern. When the stock is moving up in this base the volume bars are higher than when the stock is moving lower

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NVDA
Too choppy for anything more than a quick trade. Next Technical buy point for me is at the $974 on heavy volume. I could start nibble on it with a quarter or a half position size as it is making constructive formations within this forming base. Constructive formations = higher highs, tight pivots. This is very watched stock so it would have high correlation to the general market