This Week's Stock Ideas

Monday, April 22, 2024

Good morning everyone, and welcome to all who recently joined. Remember to comment or ask questions below.

Last week, we mentioned that sellers were taking control and expected some continued selling pressure. The S&P 500 pulled back roughly 4% for the week and almost 6% since our post a few weeks ago, in which we discussed some of the signs of weakness we noticed behind the scenes. Hopefully you were following along and avoided the sharp decline. So the biggest question we have been getting now is “How much more downside can we expect?” It's a tough question for sure, but based on our analysis, it appears we are very close to a strong support level. If we breach that level, we can expect another 5-6% decline at least, but we anticipate buyers to start coming back into the picture at these levels. This week will tell us a great deal as we begin to get some earnings reports from big tech. We will also get a reading from the Fed’s favorite inflation gauge. Stay tuned and look out for weekly updates.

Check out this week’s trade ideas.

Last week’s sector performance