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Markets Power Forward during Slow News Week
Happy Sunday, this is your friendly reminder to send your mom a Happy Mothers Day text!
MARKET RECAP
Markets power forward during slow week
SPY Daily Chart
It was a relatively quiet week on the news front for the stock market. Weekly jobless claims rose to 231,000, its highest level since August. This is indicating a weakening job market which signifies the high interest rates could actually be working.
Disney, Uber, Airbnb and Shopify all dropped significantly following their respective earnings reports. Overall, the market climbed steadily with the Dow posting its best week of 2024. SPY now sits comfortably over the 8 ema, while the 8 ema crossed back through the 50 ma this week. A couple more strong sessions and it looks like the 21 ema is also headed to cross through the 50 ma this week as well.
For the time being it looks like the market is back on a bullish movement after the last month of weakness. The PPI and CPI inflation reports this week will be critical in determining what the fed will do with interest rates in June. If we get a promising report, there is nothing stopping this movement upwards until NVDA reports earnings.
TRENDWATCH
Alibaba Is Trying to Break Through
BABA Daily Chart
Alibaba, the Chinese tech giant has had a rough few years being down nearly 75% from its 2020 highs. In recent weeks it has been rebounding and is trying hard to break through its 200 day moving average for this first time since August 2023. The company reports earnings this week and I am keeping my eye on this to see if it can break this major downward trend. Even if it stays above the 200 ma, I would still like to see a golden cross (50 ma crossing the 200 ma), before going long in it.
Last Weeks Trend: TSM
TSM Daily Chart
Last week I pointed out TSM as my trend watch to see how if the 8 ema and 21 ema could cross the 50 ma. The company had a strong week and both of those crosses came to fruition. TSM jumped nearly 5% on Friday and now sits comfortable above the 8 ema.
In the News
💻 Apple announces their new iPad and receives backlash from their controversial commercial for it.
🎥 Disney beats earnings expectations but plummets over 9% on Monday.
🚗 Uber misses big on earnings and the stock dropped in response.
UPCOMING WEEK
This week will be highlighted by the PPI report on Tuesday and CPI report on Wednesday. Home Depot and Alibaba both report earnings on Tuesday, with Walmart reporting on Thursday.