Your Market News For The Week… (04/21/2024)

Let me get you ready so that you can trade at your best this next week…

First of all, I hope you made a lot of profits last week.

As we will have a heavy upcoming week.

Let’s begin with the BEST information to get you started. 😎

I’ll divide it into: 

1. Market Outlook

2. Earnings

3. Economic Outlook

4. Top Stocks 🔥

Market Outlook

First of all, WHAT A RIDE we had last week!

Moving forward,  it's likely we’ll see a lot of choppy price action while market participants decide whether or not they want to step in. 

Remember, markets are either resting, or running. 

They’re not always in motion…

With high geopolitical tensions, an uncertain FED forecast, and the biggest week of earnings season ahead of us. 

This setup would typically provide muted price action for the broader index.

That said, let’s keep an open mind and look at open both bullish and bearish views:

For the bulls, SPY MUST hold above 496. If SPY can pull that off, with any relief on the geopolitical front, accompanied by positive earnings reactions and/or dovish rate rhetoric, we could see a nice upside reversal in the S&P500. 

An average week's range would bring SPY back up to its 50-day simple moving average of around 510 this week. 

Below 496, though, and we should expect to see 489 in short order…

If that level fails, then we are looking at retracing a significant portion of this year's gains, and an average week's range, to the downside, would land SPY right around 480.

There is a significant amount of confluence down here, so in that event, I would not expect to see any lower this week.

Last weeks standouts were decidedly “risk off” with consumer staples and utilities leading the way. 

We're still seeing bullish flows in the commodity sector including  oil, metals, in addition to other risk-off assets.

Earnings 

(This is the busiest week we will see with TSLA, META, MSFT and GOOGL all reporting this week.)

• TSLA: Expectations are low and having lost so much momentum this year it's unlikely to have a broader impact on the indices.

• META: Will likely be a market mover and impact many of its peers when it reports. 

• MSFT: Doesn’t typically move much on earnings. We’ll be exploring a short premium trade.

• GOOGL: Unfortunately for this current outperformer, it is coming into the print with high expectations but has nearly always failed to meet them. Could this be the quarter that changes everything? We’ll will see…

Economic Outlook

The calendar is pretty light to start the week and ramps towards the end.

Closing us out with the Feds favorite inflation gauge PCE which can make or break the entire week for us…

Top Stocks 🔥 

MARA - As noted in our BTC halving article, BTC miners will now be making half the rewards. We'll be exploring downside plays this week.

CRWD - Losing a key level last week, we will be exploring downside plays this week.

GDX - While we believe GLD may have more consolidation in store, we think GDX may have more gas left in the tank. We’ll be exploring upside positions.

There’s something I have to tell you…

Every Monday at 12:00 PM EST, I do a livestream on YouTube going through my Weekly Trade Plan for the week…

Explaining in-depth charts, analysis, and news.

Join us only if you want to create the best trade plan for next week.

Rooting for you,

Paper Gains.

P.S. Our private group will know when and how we take the trades. If you’re interested in knowing more about it, respond to the poll down below 👇