Technical Analysis Weekly Recap - December 7, 2024

Mike Pair Money and Biddles Investment Group
Technical Analysis Weekly Quick Recap - December 7, 2024

Quick Recap

The meeting covered various stock market topics, trading strategies, and technical analyses. Discussions included market indices, sector performance, specific stocks, options trading concepts, and managing market narratives. The team also emphasized the importance of understanding fundamentals, technical analysis, and personal accountability when making investment decisions.

Next Steps

Team Lead: Update the TradingView dashboard with new stocks and reassess the BBAI options position. Add Reddit (RDDT) to the watchlist.

Participant 1: Monitor BBAI for a breakout above $4.82 resistance and set a tight stop loss on the position.

Participant 2: Research CleanSpark (CLSK) for range trading opportunities.

Crypto Specialist: Propose a redeployment strategy for idle crypto assets.

All Members: Review and provide input on the crypto redeployment strategy. Monitor retail stocks (e.g., TGT, WMT, FIVE) following strong Black Friday sales and observe the total crypto market cap as it nears previous highs.

Participant 3: Watch INOD for potential entry points.

Participant 4: Research BBAI fundamentals for long-term potential.

Participant 5: Monitor MPTI for range trading opportunities within the $4 range.

All Members: Evaluate new price targets and strategies discussed, including options adjustments for JUMIA.

Meeting Highlights

Market Performance and VIX Discussion

The team reviewed weekly index performance: the Dow and Russell declined, while the Nasdaq and S&P 500 showed gains. The VIX (fear index) was noted at historical lows, suggesting low volatility. The group discussed VIX trading opportunities and its value as a market sentiment indicator.

Sector and Stock Trends

Sector performance was analyzed, with strong results in communications and consumer discretionary. Travel stocks, such as Carnival and American Airlines, were discussed along with their correlations to interest rates.

Breakouts and Technical Analysis

Stock breakouts were reviewed, particularly among "Mag 8" stocks. Amazon, Netflix, and Microsoft showed strong upward trends, while Apple, Google, Meta, and Tesla were analyzed for trading ranges. SMCI’s recent breakout was also discussed.

Options Trading and Volume Analysis

Covered calls were discussed as a way to generate premium income. It was emphasized that price movements should be analyzed before volume to confirm trends. Volume without price movement was noted as a possible indicator of strategic buying. Cup patterns were also explored, with a focus on the reliability of longer-term formations.

AI Stocks and Narrative Importance

AI-related stocks, including Palantir and Big Bear AI (BBAI), were highlighted for their growth potential. Resistance levels and fundamentals, such as earnings and contracts, were key considerations. Understanding a stock’s narrative was emphasized as essential for identifying long-term opportunities.

Option Strategies and Stock Correlations

The strategy of holding options long-term to allow for recovery was explored. Stock correlations were examined, such as Apple’s in-house modem development potentially impacting Qualcomm. Retail stocks, including Walmart, Target, TJ Maxx, and Dollar Tree, were analyzed for breakouts above resistance levels.

Managing Trading Information Overload

Strategies for managing trading information included focusing on familiar stocks, setting alerts, and starting with small positions. Scaling in and out of trades was discussed as a way to manage risk effectively. Stocks such as Big Bear AI and CleanSpark were evaluated for opportunities and risks.

Stock Analysis and Trading Opportunities

Chip stocks, banks, and the financial sector were reviewed. Support and resistance levels were emphasized for identifying entry and exit points. Tools like TradingView were recommended for stock analysis.

Stock Patterns and Tax Considerations

The head-and-shoulders pattern was discussed as a method for predicting stock movements. Short opportunities, such as after a reverse split, were noted. Tax implications of frequent trading were addressed, emphasizing the importance of managing taxable events. Stocks such as Walmart, Zoom, Visa, and Snowflake (SNOW) were discussed, with potential breakout opportunities identified.

Key Takeaways

The team focused on refining trading techniques, identifying opportunities, and aligning strategies with market trends and fundamentals. Emphasis was placed on personal accountability, understanding stock narratives, and managing trading information effectively.

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