Technical Analysis Weekly Recap - January 25, 2025

Weekly Stock Market Recap - 1/25/2025

Summary

Work-From-Home Experiences and Stock Analysis
The team discussed work-from-home experiences and associated challenges. One member shared that working from home daily has its pros and cons, particularly regarding social interaction and physical activity. Another member reported a strong trading week while managing losses from December. A dashboard was developed to help identify stocks for investment, focusing on high-potential sectors. One executive shared their experience investing in American Airlines' earnings despite an earlier decision to avoid it, leading to a loss. They plan to adopt the dashboard for future stock analysis.

Market Performance and Apple Discussion
The discussion covered weekly market performance, focusing on major indices like the Dow, Nasdaq, Russell, and S&P 500, all of which posted positive gains. The healthcare sector, represented by XLV, saw its strongest week during a five-week upswing, while the consumer discretionary sector declined. Apple’s significant pullback was highlighted as a potential buy opportunity. Perspectives on Apple varied, with one member planning to exit their position while another considered entering around the $220 mark. Upcoming earnings reports from Apple, Microsoft, and Meta, as well as the Federal Reserve’s potential rate decision, were also discussed.

Stock Performance and Market Movements
The group reviewed the weekly performance of key stocks. Amazon broke out of a range, and Google experienced a notable $2 move. Meta continued its five-week upward trend, while Microsoft remained range-bound. Netflix surged following earnings, and Nvidia continued trading in a range. Tesla and Broadcom showed little movement. A sharp drop in the S&P 500 midweek correlated with declines in Palantir and Google.

Crypto Orders, Tariffs, and Stock Opportunities
The team discussed the potential effects of a new crypto executive order and ongoing tariff negotiations on the market. Opportunities in materials, communications, energy, and consumer staples sectors were explored. Stocks such as UUUU and NSRGY were highlighted, with an emphasis on setting limit orders to capitalize on dips. The conversation concluded with a discussion about a potential breakout in the utilities sector.

Nestlé’s Financial Performance and Risks
Nestlé’s financial performance and portfolio diversity were analyzed. Despite recent earnings misses and a declining stock price, the company’s stable revenue, net income, and global presence were noted as strengths. Risks such as inflation, weight loss drugs, and bird flu impacting chicken-related products were discussed. The team debated whether the current stock decline was justified, given the company’s overall stability.

Stocks, Growth, and Risk Assessment
The group analyzed various stocks, focusing on growth and risk potential. Hershey’s significant decline was noted, along with concerns about further downside. Chewy was identified as a promising opportunity due to consistent growth. Apple and Palantir were also discussed, with plans to monitor both. The importance of waiting for clear stock signals rather than making impulsive decisions was emphasized.

AI Trading Strategies and AMD
Strategies for trading in the AI sector, particularly with AMD, were explored. One member was managing a loss and considering whether to hold or re-enter at a lower level. Advice was given to wait for AMD to reach the $64–$66 range before re-entering, while remaining cautious of potential resistance. They also discussed the potential for chart patterns, including a cup-and-handle formation, and previous resistance levels.

Trade Discussion and GE Performance
Volatile stocks like SMCI were analyzed, with suggestions for trading around support levels. The potential of IonQ was also reviewed, though concerns were raised. General Electric’s recent performance and a downgrade were noted, along with strategies for managing trades in spinoffs. Discussions included a preference for scaling trades to preserve win rates.

Healthcare Sector Investment Performance
The healthcare sector’s strong recent performance, with gains of 42–43% over three months, was highlighted. However, concerns were raised about a recent reversal and potential losses. The team discussed opportunities to re-enter the market at better prices and agreed to remain vigilant for new opportunities in the sector.

Pfizer, Riot, VST, and Trade Strategies
Pfizer was identified as a potential seasonal play, with suggestions for small limit orders at $25. Riot’s potential pullback and upside were also analyzed. The team reviewed VST, Google, and other stocks with growth potential. Patience and scaling out of trades were emphasized as key strategies for preserving win rates.

Stock Selection Strategy and SpaceX
The group discussed a refined strategy for stock selection, focusing on sectors with strength and low volatility. Technical indicators like RSI, CCI, and MACD were demonstrated as tools for identifying opportunities. SpaceX’s potential public offering and the broader potential of space exploration ETFs were also considered.