Weekly Recap - Stock Technical Analysis - Dec 14, 2024

Technical Analysis Weekly Quick Recap - December 7, 2024

Quick Recap

The team discussed the development of a stock analysis tool, the performance of various stocks and indices, and the potential for a currency reset within the next 5 to 10 years. They analyzed specific stocks, explored potential investment opportunities, and shared insights on various sectors and companies. The conversation concluded with a discussion on stock support and resistance levels, along with the potential impact of interest rates on the stock market.

Next Steps

• Update the stock analysis dashboard with the latest data.

• Research and verify the date of the upcoming Federal Reserve interest rate decision.

• Add MicroStrategy (MSTR) and uranium stocks to the watchlist.

• Consider entering positions in VST, Progressive (PGR), Nvidia, SoFi, and AMT.

• Monitor Palantir (PLTR) for potential entry following its addition to the Nasdaq 100.

• Watch for a potential Santa Claus rally following the Fed's interest rate decision.

• Research and add nuclear energy stocks to the watchlist.

• Monitor regional bank stocks, particularly FHN, for potential entry points.

• Consider entering a position in SERV at identified support levels.

• Keep an eye on retail stocks, such as Walmart and Costco, for potential opportunities.

• Reassess healthcare stocks, including UNH, following recent pullbacks.

• Monitor communication sector stocks for investment opportunities.

• Continue monitoring Walmart and consider adding at identified support levels.

• Exercise caution with energy sector stocks due to high volatility and potential downside.

Summary

Stock Analysis Tool Development

The team discussed progress on a stock analysis tool designed to pull data on technical indicators and identify trading opportunities. Future features include mobile compatibility and conditional formatting to highlight promising stocks. The tool is expected to streamline watchlist management. Suggestions included exploring app development languages and ensuring regular updates.

Stocks, Indices, and Support Levels

The team noted the performance of major indices: the Nasdaq remained strong, while the Dow showed signs of potential decline. Discussions focused on support and resistance levels, particularly for stocks like Qualcomm, Palantir, and Nvidia. Concerns were raised about small caps and the Dow unless strong candidates emerged.

Sector Performance and Strategies

The performance of key sectors was reviewed. While consumer discretionary and communications sectors showed strength, utilities and energy sectors struggled. The team recommended focusing on strong sectors and suggested smaller position sizes during market turbulence. Stocks like VST, Sprouts Farmers Market, and Progressive (PGR) were highlighted as opportunities to monitor.

Dividend Stocks and Investment Opportunities

The group discussed dividend-paying stocks with strong historical performance but noted capital limitations for larger positions. Additional stock ideas included Apple, Amazon, Google, Meta, Microsoft, Netflix, and Nvidia, with attention to technical patterns and news-driven catalysts, such as the TikTok ban potentially benefiting Meta and NFL streaming supporting Netflix.

Stock Market Performance and Legislation

Discussions centered on companies like Nvidia, Tesla, and UnitedHealth Group. While these companies faced challenges, their stock prices remained stable. Proposed Senate legislation affecting UnitedHealth's pharmacy business was flagged as a risk, with attention also given to Cigna and Oscar Health.

Market Trends and Earnings Analysis

The team reviewed stocks such as GE, SoFi, and Palantir, focusing on earnings, insider trading, and mutual fund influences. Palantir’s recent inclusion in the Nasdaq 100 was noted as a positive indicator. Emphasis was placed on interpreting charts and responding to trends effectively.

Investment Strategy and Crypto Discussion

Long-term strategies included exploring cryptocurrency, specifically Bitcoin, and companies like MicroStrategy that invest heavily in it. Discussions touched on diversification and the feasibility of a global currency reset within 5 to 10 years.

Investment Patterns and Opportunities

The team analyzed chart patterns, such as the cup-and-handle formation, to identify opportunities. Stocks like Serve Robotics, AMT, and other real estate investment trusts were highlighted for potential upside. Specific stop-loss strategies were discussed to manage risk.

Support and Resistance Analysis

Support and resistance levels were reviewed, with emphasis on historical versus shelf support. Specific stocks, including Walmart, Dollar General, Walgreens, and CVS, were analyzed for potential rebounds and opportunities.

Interest Rates and Sector Strategies

The team discussed the impact of interest rates on the market, particularly in energy and healthcare sectors. Stocks like Target, Costco, and Delta Airlines were evaluated, with caution expressed about timing trades.