If there were a week in the markets to expect fireworks, this one would be it, so it’s no surprise to see yet another explosive rally from the major indexes. After all, what’s more patriotic than celebrating our independence with new all-time highs? In other news;
- Unemployment hits 2.5-year high
- TSLA delivers on deliveries
- Crypto takes another beating
- Pelosi makes moves
- Bezos sells $5b AMZN
While many market participants likely took advantage of the shortened holiday week to enjoy some time away from the screens, earnings season kicks off next week with JPM, BAC, DAL, and more reporting. Will volatility be back on the menu soon? Let’s dig into the charts and see how we’re positioned.
Weekly Analysis
SPY (SPDR S&P 500)
Is it time for the SPY ETF to finally break out of the long-term rising wedge? It sure feels like it, as the index closed the week at an all-time high of $554.64 (+1.91%). Giving weight to a continuation higher is the bullish MACD cross in tandem with the price closing above the upper Bollinger Band.
QQQ (Invesco QQQ Trust)
After several sessions of consolidation above the top of the long-term rising wedge, the QQQ ETF achieved a proper lift-off this week, closing at an all-time high of $496.16 (+3.56%). The bullish MACD cross and the close above the upper Bollinger Band suggest just how strong this index is right now.
IWM (iShares Russell 2000)
The small caps appear to be in a bit of trouble, as the week began with the price getting rejected at the bottom of the long-term rising wedge and concluded with a close near the lows at $200.87 (-1.00%). Last week’s bullish MACD cross seems to be on the verge of a reversal, and with the Bollinger Bands tightening, this index could see some real volatility soon.
Earnings
Notable Results
STZ (Constellation Brands)
- EPS: $3.57 vs $3.46 est
- REV: $2.66B vs $2.67B est
MSM (MSC Industrial Direct)
- EPS: $1.33 vs $1.34 est
- REV: $979M vs $982B est
DAL (Delta Air Lines) – 07/11
- EPS Estimate: $2.37
- REV Estimate: $15.50B
PEP (Pepsi) – 07/11
- Estimate: $2.16
- REV Estimate: $22.69B
C (Citigroup) – 07/12
- EPS Estimate: $1.43
- REV Estimate: $20.08B
WFC (Wells Fargo) – 07/12
- EPS Estimate: $1.27
- REV Estimate: $20.24B
JPM (JPMorgan) – 07/12
- EPS Estimate: $4.62
- REV Estimate: $43.88B
BK (BNY Mellon) – 07/12
- EPS Estimate: $1.41
- REV Estimate: $4.51B
What’s Happening Now
AAPL (Apple)
Apple is on an impressive 9-year winning streak in July, gaining every year since 2015 with an average return of 6.94%. So far, 2024 has been no exception. Just seven days into the month, Apple has already advanced over 6%.
AMZN (Amazon)
If you think nine years is impressive, how about twelve? Next week marks Amazon’s most dominant period of the year, boasting the highest win rate and average return. Over just five days, Amazon typically rallies an impressive 4.73%.
NVDA (NVIDIA)
Fishing for investment ideas? Q2 insider sales reveal a clear trend: they’re offloading high-return stocks with inflated book value multiples but snapping up stocks trading at or near book, but have lagged the broader market. These names are a great place to hunt for undervalued gems.
Believe it or not, this is just a fraction of what happened in the markets this week. For a full run down delivered straight to your inbox every weekend, sign up for The Official TrendSpider Newsletter
