To The Moon

As we came to the last day of Q2 2024, the trading session have a strong start but retreated and closed on a weaker strength. Major indices, including the S&P 500 and Nasdaq Composite, were up between 0.7% and 1.0% at their morning highs, reaching record territory.

Except for the Russell 2000 (+0.5%), which saw a late surge due to the reconstitution of the Russell indices, leading to heavier-than-average trading volume, the major indices closed in the red.

Report Show Increase in Real Disposable Personal Income and Spending

A positive Personal Income and Spending Report for May, showing increases in real disposable personal income and real personal spending along with a moderation in inflation pressures, initially boosted Treasury yields lower and equity futures higher.

Dow component Nike (NKE), which fell 20.0% to $75.36 due to a poor FY25 sales outlook provided a disappointing performance, but the positive economic news managed to offset this lacklustre performance.

Following the first presidential debate, uncertainty over the presidential election grew as reports suggested Democrats might replace President Biden on the Democratic ticket after his debate performance.

Yield Reversal Dampened Momentum In Mega-Cap and Semicon

Mega-cap stocks and semiconductor issues led the early gains, but a reversal in Treasury yields and quarter-end activity dampened the momentum. The 2-yr note yield remained unchanged at 4.756%, while the 10-yr note yield rose six basis points to 4.34% after initially falling to 4.421%.

S&P Information Technology Sector Gain Early Ended Day Lower

The S&P 500 sectors has only four finishing higher with real estate gaining +0.62%, energy managed to gain 0.42% and financials managed a +0.38%, and industrials has a flat 0.08% gain.

The heavier losing sectors came from communication services (-1.63%), consumer discretionary (-1.36%), and utilities (-1.0%). The information technology sector, which was up 1.6% at one point, ended the day down 0.43% but was the best-performing sector for the quarter with a 13.6% gain.

The Vanguard Mega-Cap Growth ETF (MGK) lost 0.9% today but ended the quarter up 9.6%. Mega-cap leadership contributed to the S&P 500's 3.9% quarterly gain, while the equal-weighted S&P 500 declined 3.0% in the same period.

Stocks To Watch

Verizon (VZ) has been ordered to pay $847 million after a U.S. District Court jury found the company guilty of infringing on patents held by General Access Solutions Ltd. The infringement involved Verizon's 4G and 5G wireless routers, hotspots, and 5G cellular base stations. The jury awarded $583 million for violating one patent and $264 million for another, rejecting Verizon's claims of non-infringement and patent invalidity.

$NANO Nuclear Energy Inc(NNE)$ surged over 41% after the U.S. Senate passed the Accelerating Deployment of Versatile, Advanced Nuclear for Clean Energy Act. The legislation supports the development and deployment of advanced nuclear technologies, aligning with NANO Nuclear's mission of creating portable micro nuclear reactors. Additionally, the Department of Energy announced plans to purchase up to $2.7 billion of domestically supplied enriched uranium.

From the technical, NNE looks to be making an upside move, but MACD does show strength, KDJ need more confirmation to see the J value going on the top.

$Roku Inc(ROKU)$ posted its seventh consecutive session of gains, closing 1.32% higher at $59.93. The stock has added 12.06% over the last six trading days, although it remains about 35% down year-to-date. Short interest in Roku stands at 8.21% of the total float.

Even though ROKU has been down for more of the year, but from the technical, look like things is moving on the upside with the bullish crossover from MACD happening on the last week of June, I would be expecting ROKU to be performing in the third quarter of 2024.

$DraftKings Inc.(DKNG)$ ended a six-day losing streak, closing up 2.86% at $38.17. The stock has gained 47.03% over the past 12 months. Despite recent fluctuations, DraftKings maintains a Buy rating from analysts, with a score of 4.00 out of 5, and improved its valuation grade from F to C- over the last six months.

Even though DJNG has ended its losing streak but from the technical, it is still not out of the woods, MACD is still showing a downward trend, and KDJ does not look promising for a reversal, so we might still need to monitor this stock if you intend to trade it.

Chewy (CHWY) and Petco Health and Wellness Company (WOOF) experienced volatility following a social media post by Roaring Kitty. Chewy's stock fell 7.15% on Friday, while Petco rallied 13.14%. Options activity for both stocks has been higher than usual, with significant short interest in both companies.

ASML Holding (ASML) and $CrowdStrike Holdings, Inc.(CRWD)$ saw notable purchases by Congresswoman Marjorie Taylor Greene, who disclosed buying stakes in these companies. ASML is known for its critical role in semiconductor manufacturing, while CrowdStrike has been added to the S&P 500, reflecting its growing importance in the cybersecurity sector.

With CRWD being included in the S&P 500, there is much anticipation, but if we look at the technical closely, there have not been any clear signal that CRWD is forming an upside, we might need to look at this week or rather this July CRWD price action.

There might be a chance of a gap up if there is significant trade from insiders.

Summary

Q2 of 2024 ended on a weaker note despite trading session ride off with a strong start, mega cap and semiconductors did not manage to hold the fort, while energy and financials managed to show surprise gains.

So what holds for Q3 2024 as we begin the first trading session today (01 Jul), and this is a short week, we might see similar pattern with tech stocks leading strong but when selling or profit taking happen, the session might end flat or lower.

Appreciate if you could share your thoughts in the comment section whether you think Q3 trading session would start off with a better start?

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.