SPY Chart done on five minute candles. The market volatility index (VIX) spiked nearly 60% in recent trading as fears of an economic collapse continued to take their toll on stocks. In the last two weeks we’ve seen several bank failures and liquidity crunches across the globe, putting more pressure on the inflation ridden economy. Last Friday’s Consumer Sentiment Report showed a decline for the first time in fourth months, signaling that consumers are losing confidence and are likely to decrease spending. There are pros and cons to a decline in consumer spending. Less spending means less demand, which will help tame inflation at a quicker rate. But less spending also means a decrease in revenue for many companies, which...
MSFT Chart done on hourly timeframe. Microsoft shares closed higher today after getting a boost from the recent GPT4 rollout. The company’s large stake in OpenAI has allowed them to power their Bing search engine with the latest artificial intelligence technology and has made use of their cloud computing infrastructure, Azure. Shares of Microsoft have been rallying for three days, despite the overall market turmoil and fears. Looking at its hourly chart over the last ten days, we see that the stock has moved above the 260.00 resistance, which makes that the most critical support going forward. The stock’s short term chart does look a bit overextended, so a consolidation period may be due; the consolidation range is 260.00-266.75, above...
SPY Charts done on five minute and daily candles. Stocks got rocked last week after the collapse of Silicone Valley Bank, the 16th largest bank in the United States. Silvergate Capital was also forced to close down its banking division just prior to SVB last week. The fall of these two banks sent shockwaves that had a sense of déjà vu, many remembering the Washington Mutual downfall from 2008. The pains these giant institutions are seeing come from the monetary tightening cycle our economy is going through. Historically every time The Federal Reserve raises rates, that’s when those who are over-leveraged or lack liquidity fall victims to the shifting policy. The magnitude of this downfall is likely only starting to...
AAPL Chart done on hourly candles. Apple’s annual shareholder meeting takes place tomorrow at 9 AM P.T. and investors are eager to hear what’s coming. Many investors want to hear Tim Cook talk about VR and the next iPhone, however Apple can have anything in store for us. Last week we saw Tesla deliver their shareholder meeting and the stock has been selling off since, but that doesn’t mean the same is in store for Apple. As many know, Apple is the most valuable publicly traded company in the world, and for them to keep that value they’ll have to continue delivering excellence, being efficient, and creating sought after items. This meeting is about figuring out if the company’s leaders...
NVDAChart done on hourly candles. Nvidia shares closed near the week’s lows today following a sharp sell-off across all sectors. The semiconductor industry has been one of the leaders on the charts in the last few weeks, with Nvidia enjoying a boost of positive attention from ChatGPT and AI. The rally the stock has been on is starting to show some weakness, and it is overdue for a strong pull back. Nvidia’s price to earnings ratio is currently at 138, which is about 9 times higher than what’s considered a “healthy” price to earnings ratio, and even with the projected revenue from ChatGPT, the stock isn’t worth that much yet.Looking at the short term charts Nvidia closed the day just...
