The Stock Market Will HEAT UP Tomorrow!

StockedUp
5 Mar 202419:35

TLDRThe stock market experienced significant volatility with major tech stocks like Apple and Tesla taking a hit, while Bitcoin broke new all-time highs. The S&P 500 had a notable pullback, ending a 260-day streak without a major correction. Jerome Powell's speeches and the earnings calendar, featuring companies like Broadcom and Costco, are expected to influence market movements. Traders are advised to stay adaptable and watch for opportunities in both directions, with a focus on stocks like Meta, QQQ, Microsoft, and Google, as well as commodities like gold.

Takeaways

  • 📈 The stock market is experiencing significant volatility with notable movements in both directions.
  • 🗣️ Jerome Powell's speeches this week are expected to influence market movements.
  • 📊 The S&P 500 has been on a 260-day streak without a major pullback, one of the longest since 2000.
  • 🔴 64% of stocks in the market were down today, with tech giants like Apple and Tesla taking significant hits.
  • 🚗 Tesla's stock price fell nearly 4%, and there were reports of suspected arson attacks at their Berlin gigafactory.
  • 📱 Apple's stock is struggling with iPhone sales in China plunging 24%, and the company faces other negative news.
  • 💸 Bitcoin broke above its all-time high but experienced a quick sell-off afterward.
  • 📉 The QQQ ETF had a significant pullback, breaking below key supports.
  • 🔽 Microsoft's stock faced strong selling pressure and is near the $400 support level.
  • 📝 The earnings calendar is packed with notable companies reporting, including Neo, Target, CrowdStrike, and others.
  • 🔄 Market adaptability is crucial as conditions change, with a focus on both bearish and bullish plays.

Q & A

  • What is the significance of the stock market's 260-day streak without a major pullback?

    -The 260-day streak without a major pullback indicates a period of relative stability and growth in the stock market, which is considered rare as the last similar streaks occurred around 2017 and 2000.

  • Which tech stocks experienced significant drops during the rough market day described in the transcript?

    -Apple, Tesla, and Microsoft experienced significant drops, with Apple and Tesla both down almost 3% and Microsoft down almost 3%.

  • What was the impact of the suspected arson attacks at Tesla's Berlin gigafactory?

    -The suspected arson attacks at Tesla's Berlin gigafactory caused a short-term negative impact on the stock price, contributing to Tesla's overall decline.

  • How did Bitcoin perform during the period discussed in the transcript?

    -Bitcoin broke above its all-time high but then experienced a quick pullback as sellers entered the market.

  • What is the importance of Jerome Powell's upcoming testimony?

    -Jerome Powell's testimony is significant because as the head of the Federal Reserve, his statements can influence market direction and cause volatility.

  • What is the outlook for Apple's stock price based on the transcript?

    -The outlook for Apple's stock price is bearish in the short term, with the stock having broken a major support level at $180, and the next major support levels being around $165-166.

  • What are the potential downside levels for Microsoft's stock based on the script?

    -The potential downside levels for Microsoft's stock are around $400, with a focus on whether the stock can maintain support at this level amidst market selloffs.

  • What is the strategy for trading QQQ as described in the transcript?

    -The strategy for trading QQQ is to watch for continued momentum down, with a focus on whether the stock can break below key supports and maintain general market weakness.

  • What are the conditions for considering a trade on Google's stock?

    -A trade on Google's stock is considered if the stock breaks below the support level of $130 or if it breaks above the resistance level of $132.5.

  • What is the rationale behind the $1.5 million put option trade on Datadog (DDOG)?

    -The rationale is that DDOG's stock has shown weakness and increased volume, and the options have time before expiration. The trade is considered attractive, especially if the market continues to sell off.

Outlines

00:00

📈 Market Volatility and Tech Stock Struggles

The video discusses the recent market volatility, highlighting the S&P 500's significant pullback and the tech sector's struggles. Apple and Tesla are mentioned as taking major hits, with Apple's stock chart showing a rare negative trend. The S&P 500's impressive streak of 260 trading days without a 2% pullback is noted, and the impact of Jerome Powell's upcoming speeches on market expectations is anticipated. The video also touches on Bitcoin's new all-time high and the importance of staying adaptable in the current market climate.

05:02

📉 Tech Giants' Challenges and Bitcoin's Surge

The paragraph focuses on the challenges faced by tech giants like Apple and Tesla, with Apple experiencing a plunge in iPhone sales in China and Tesla dealing with suspected arson attacks at their Berlin gigafactory. Both companies' stock charts are analyzed, indicating potential further declines. In contrast, Bitcoin's rally and new all-time high are discussed, along with the potential for market pullbacks as it approaches these levels. The influence of Jerome Powell's testimony on market volatility is also mentioned.

10:03

🔍 Market Analysis and Predictions

The speaker shares their analysis and predictions for the market, focusing on stocks like Meta, QQQ, Microsoft, and Google. The video discusses potential downside plays for Meta and Microsoft, while also considering Google's support levels for both bearish and bullish strategies. The importance of adaptability in trading is emphasized, and the speaker provides specific stock setups based on key resistance and support levels. The use of Bookmap for trading insights is also highlighted.

15:05

🚀 Big Money Trades and Member Recognition

The video concludes with a focus on a $1.5 million big money trade in Datadog (DDOG) and the potential for short-term opportunities in the stock. The speaker advises viewers to watch for specific price levels in stocks like GLD, TLT, and XOM for upside trades. The video also recognizes a member of the day for their successful trading setups and encourages viewers to subscribe for daily market analysis and predictions.

Mindmap

Keywords

💡Stock Market

The stock market is a platform where the securities of publicly-held companies are issued and traded, such as shares of stock. In the video, the stock market is described as 'heating up' with significant movements, indicating a period of volatility and potential opportunities for investors. The discussion revolves around the performance of various stocks and market indices like the S&P 500 and QQQ.

💡Jerome Powell

Jerome Powell is the Chairman of the Federal Reserve, the central bank of the United States. His speeches and statements can significantly influence the stock market as they often pertain to monetary policy and economic outlook. In the video, it is mentioned that Powell's twice scheduled speaking events for the week could lead to market volatility.

💡Bitcoin

Bitcoin is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. The video highlights Bitcoin breaking above its all-time high, indicating a significant milestone and potential investment interest in cryptocurrencies.

💡Apple

Apple Inc. is a technology company known for its innovative consumer electronics, such as the iPhone, iPad, and Mac computers. The video discusses Apple's stock performance, noting a significant drop in its value, which is attributed to various factors including a reported plunge in iPhone sales in China.

💡Tesla

Tesla, Inc. is an American electric vehicle and clean energy company. The video mentions Tesla's stock taking a beating, with shares dropping due to suspected arson attacks at their Berlin gigafactory and a decline in China sales, reflecting challenges the company is facing.

💡Nvidia

Nvidia Corporation is an American technology company known for its graphics processing units (GPUs). In contrast to other tech stocks, Nvidia's stock is mentioned as being in the green, indicating a positive performance amidst a market downturn.

💡Market Pullback

A market pullback refers to a drop in the price of a security or an index after a period of sustained price increases. The video discusses the S&P 500 experiencing a pullback, which is a significant move downward from recent highs, and is considered a normal part of market cycles.

💡VIX

The VIX, or Volatility Index, is a measure of the stock market's expectation of volatility over the coming 30 days. It is often referred to as the 'fear index' because it tends to rise when investors are expecting a drop in the market. The video mentions the VIX blasting, indicating increased market fear and potential for further volatility.

💡Bookmap

Bookmap is a trading tool that provides a visual representation of the order book, showing the depth of market orders at different price levels. It is used by traders to analyze market sentiment and potential price movements. The video praises Bookmap for its ability to help identify support and resistance levels, which are crucial for short-term trading strategies.

💡Earnings Reports

Earnings reports are financial statements released by publicly traded companies that summarize their revenue, expenses, and profits over a specified period. These reports can significantly impact a company's stock price as they provide insights into the company's financial health. The video mentions several companies with upcoming earnings reports, which are anticipated to cause market reactions.

💡Meta (Facebook)

Meta Platforms, Inc., formerly known as Facebook, Inc., is a social media and technology company. The video discusses Meta's stock performance, noting a potential downside due to a loss of momentum and market conditions. The discussion suggests that Meta's stock could continue to decline if the market remains weak.

Highlights

The stock market is experiencing significant volatility with many stocks moving in both directions.

Jerome Powell is speaking twice this week, which could influence market movements.

The S&P 500 has not seen a major pullback (2% or more) for 260 trading days, one of the longest streaks since 2000.

64% of stocks in the market were in the red today, with notable tech stocks like Apple and Tesla taking significant hits.

Bitcoin has broken above its all-time high, indicating a bullish trend in the cryptocurrency market.

Nvidia was the only major tech stock that remained in the green despite the market downturn.

Apple is facing challenges with iPhone sales plunging 24% in China and other bad news affecting its stock price.

Tesla is also struggling with bad news, including suspected arson attacks at their Berlin gigafactory.

The QQQ (NASDAQ-100 ETF) had a significant pullback, breaking below key support levels.

Microsoft experienced strong selling pressure, with its stock price approaching the $400 support level.

The speakers discuss the importance of being adaptable in the market, especially with the current volatility.

The earnings calendar is packed with notable companies reporting, including Neo, Target, CrowdStrike, Charge Point, JD, Victoria's Secret, Kroger, Broadcom, Costco, Marvell, and DocuSign.

The speakers provide specific stock setups and predictions for the next day, including Meta, QQQ, Microsoft, Google, Axon Mobile, GLD, and TLT.

A $1.5 million big money trade is highlighted, with a focus on Datadog (ticker symbol DD) and its put options expiring on April 19th, 2024.

The speakers emphasize the importance of not forcing a trade setup that doesn't look promising and to follow the money flow.

The video ends with a shout out to a member of the day, Mickey, for their successful trades and a reminder to subscribe for daily market analysis.

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