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Reddit Finally Hits the Public Markets
Happy Sunday. I have gotten some feedback on better times to send this Recap. Please vote in the poll below or respond to this email with times you would like to see this newsletter.
MARKET RECAP
Markets Continue to Reach All Time Highs as Fed Holds Interest Rates Steady
SPY Weekly Chart
The market rose to new all time highs this week after the fed decided to hold interest rates steady and signaled it still plans to have 3 cuts sometime this year.
The S&P 500 marks its 17th green week since October (21 weeks) and hasn’t really threatened the 8 ema in this run. Now could be a good time to sell some Covered Calls against your positions as SPY remains in overbought territory as shown on the RSI above.
It is pretty incredible that the market continues on this run despite the 2nd largest company (Apple) keeps getting hammered down nearly 14% in the last 3 months. The big news with Apple this week was the new anti-trust lawsuit that caused the stock to shave off $115 billion in market cap on Thursday. I do not see anything getting better for Apple before it gets worse. It is just difficult for a company that size to continue to grow at an above average pace, especially since they seem to be lagging in the AI race.
TRENDWATCH
AMD Sits Right on the 50 Moving Average
AMD, which has been riding the coat tails of NVDA in the AI boom, has had an incredible run being up nearly 100% since October. It is finally showing signs of weakness as it sits right at the 50 moving average heading into the week. I am keeping my eye on AMD this week to see how it responds to this critical support line.
Last Weeks Trend: Nvidia
Last week I pointed out NVDA as my trend watch to see how it would respond to the 8 ema. NVDA ended up putting in another strong week and holding strongly above the 8 ema.
In the News
💻 Apple and Google are discussing a deal to put Google’s AI Chatbot gemini onto iPhones. Googles stock shot up this week in response to the news.
🌯 Chipotle announces a 50-1 stock split.
🏦 Reddit hit the markets on Thursday. It’s highly anticipated IPO did not disappoint as the stock saw a nearly 50% gain on day 1.
🚛 FedEx stock surges after strong earnings.
UPCOMING WEEK
The markets will be closed on Friday in observance of Good Friday, it should be a relatively quiet short week. The PCE report on Friday will show us they next data on the inflation struggles.