$SPDR S&P 500 ETF Trust(SPY)$ $Invesco QQQ(QQQ)$ $Vanguard Total Stock Market ETF(VTI)$ $Apple(AAPL)$ $Microsoft(MSFT)$ $Amazon.com(AMZN)$
🚨 Urgent Reminder: Brace for Impact on 26-27 July! 🚨
Kia ora Tiger traders,
The critical dates I warned about in my post on 22 July 2024 are here! Tomorrow, 26 July, kicks off the period of expected seasonal weakness. Here's a quick summary of what we discussed and some recent updates:
Key Points:
1. Seasonal Weakness: Historically, late July is known for market slowdowns, particularly affecting non-tech stocks. It's like the mid-season slump in your favourite TV show, where things slow down and plot twists happen.
2. Market Expectations: Even stellar earnings might not prevent a stock drop if they don't meet market expectations. Sometimes, good news is already factored into the current share price.
3. Next Quarter Forecasts: A poor outlook for the upcoming quarters can drag down stock prices, regardless of how good the current earnings are.
Recent Market Updates:
- Tech Sector Pullback: 📉 The tech sector has led a recent pullback, with Tesla and Alphabet reporting earnings that missed investor expectations, causing significant declines in their stock prices.
- My recent analysis on gold futures indicates a Bearish trend in the short term. Price action is descending with potential further drops. It's a great time to consider short positions on gold and silver! 🌟🌟🌟
- Volatility Ahead: 📊 Analysts expect more volatility ahead, driven by concerns over interest rate changes and economic data releases. For instance, the S&P 500 and Nasdaq experienced their worst days since 2022 following disappointing tech earnings.
- Earnings Expectations: 📅 The upcoming earnings reports and forecasts for the next quarter are critical. Even with good earnings, poor forecasts can lead to stock price drops, as seen with recent tech earnings results.
Chris Davis recently mentioned, “The market's reaction to earnings surprises continues to underscore the importance of managing expectations and looking beyond headline numbers.”
Top Stocks & ETFs to Watch:
- SPDR S&P 500 ETF (SPY)
- Invesco QQQ Trust (QQQ)
- Vanguard Total Stock Market ETF (VTI)
- Apple Inc. (AAPL)
- Microsoft Corp. (MSFT)
- Amazon.com Inc. (AMZN)
- Tesla Inc. (TSLA)
Action Plan:
🚨 Stay vigilant and consider defensive strategies. Watch for potential pullbacks and be ready to adjust your positions accordingly. This is the time to think defence, not offence!
Motivational Quote:
"Opportunities don't happen, you create them." — Chris Grosser
Visual Recap:
Have you noticed similar trends in your trading? Share your experiences below! Let's navigate these challenges together and come out stronger.
Stay sharp, stay informed, and let’s navigate this together!
@TigerGPT What indicators and metrics should traders closely monitor to anticipate and navigate market volatility during periods of seasonal weakness, such as late July?
Happy trading ahead! Cheers, BC 🍀
@Tiger_comments @Tiger_Earnings @Daily_Discussion @TigerStars @CaptainTiger @TigerPM @MillionaireTiger @TigerOptions
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
During periods of seasonal weakness, traders should closely monitor the following indicators and metrics to anticipate and navigate market volatility:
Earnings Reports: Pay attention to the earnings reports of companies, especially those in non-tech sectors. Look for any signs of missed expectations or weak outlooks for upcoming quarters, as these can impact stock prices.
Market Expectations: Assess the market's expectations for earnings reports and other key events. Even if a company reports strong earnings, if they fail to meet or exceed market expectations, it could lead to a stock drop.
Sector Performance: Monitor the performance of different sectors, particularly the tech sector, which has historically been prone to pullbacks during seasonal weakness. Keep an eye on any significant declines or underperformance in specific sectors.
Technical Analysis: Utilize technical analysis tools and indicators to identify potential support and resistance levels, trend reversals, and other patterns that may indicate market volatility. This can help traders make informed decisions about entry and exit points.
Market Sentiment: Stay updated on market sentiment through news and analysis. Pay attention to any shifts in investor sentiment, as it can influence market movements during periods of seasonal weakness.
Volatility Index (VIX): Monitor the VIX, also known as the fear index, which measures market volatility. A rising VIX indicates increased market uncertainty and potential volatility.
Economic Data: Keep an eye on key economic indicators and data releases that can impact market sentiment and overall market performance. This includes GDP growth, employment data, inflation rates, and central bank announcements.
Risk Management: Implement proper risk management strategies, such as setting stop-loss orders and diversifying your portfolio. During periods of volatility, it's crucial to protect your capital and manage risk effectively.
Remember, market conditions can be unpredictable, and no indicator or metric can guarantee accurate predictions. It's essential to conduct thorough research, stay informed, and adapt your trading strategies accordingly.
Risk Disclaimer: The information provided is for reference purposes only and does not constitute investment advice. Trading in financial markets involves risks, and it is possible to incur losses. It is recommended to seek professional advice or conduct your own analysis before making any investment decisions.