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Market Regains Momentum After Short Dip
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MARKET RECAP
Markets Climb to New All Time Highs After Latest Inflation Reports
SPY Weekly Chart
This week the markets reached all time highs after Wednesday’s CPI Report showed signs of inflation slowing down. The report showed the Consumer Price Index rose 0.3% over the previous month and 3.4% over the prior year.
It appears that the S&P 500 has already recovered from its technical breakdown back in early April. All moving averages shown above are in an upward trend and SPY is trading well over the 8 ema.
The next major market catalyst will be Nvidia earning this upcoming week but for the time being the market looks strong. The bullish run from October to April was primarily powered by a couple of large tech stocks, but now many of the names that lagged early this year are starting to catch up.
TRENDWATCH
AMD Looks to Reclaim Upward Trend
AMD Daily Chart
This week I will be keeping my eye on AMD. It is currently down about 27% from its March all time highs but is starting to creep back up towards the 50 ma. Although it rejected off the 50 ma on Friday, the 8 ema crossed the 21 ema for the first time since March 20th. The stock should be testing the 50 ma throughout the week.
Last Weeks Trend: Alibaba
BABA Daily Chart
Last week I pointed out BABA as my trend watch to see how it would respond to the 200 ma heading into earnings. The stock topped earnings estimates and rose over 10% on the week. There also was a handful of well named investors such as Michael Burry and David Tepper who revealed large stakes in the company with their 13F filings this week. This is a prime example of a stock responding to a critical moving average, and it is not such a coincidence that it met with the 200 ma heading into earnings. Stocks will often drift towards critical levels of support right before big news that will act as a catalyst in the stocks direction. It was able to post good earnings and burst through the 200 ma, with lots of room above to rise. However, I would still be skeptical of some of these Chinese stocks because historically the Chinese government is unpredictable with its financial markets.
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In the News
💻 OpenAI releases Chat GPT-4o, a new and improved model.
📈 The PPI report showed an increase in wholesale prices of 0.5% for the month of April, higher than the 0.3% estimates.
🛒 Walmart beat earnings estimates and rose to new all time highs.
📊 The US stock market might be getting closer to 24/7 trading hours.
UPCOMING WEEK
By far the most significant market mover this week will be Nvidia posting earnings on Wednesday.
Other than that it is a relatively quiet week. The bulk of earnings season is now behind us but a few notable names still report this week, such as Lowes on Tuesday and Intuit on Thursday.