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06/14/2024 |

Market Update Into June 17th: Markets Climb Wall Of Worry

It was yet another huge week for the bulls, with markets soaring off the heels of a slightly cooler-than-expected CPI print. Despite J. Pow’s unwillingness to budge on interest rates, the Wednesday gap-ups held in 2 out of the 3 major indexes. In other news;

Despite the undeniable strength in the markets, investor sentiment is in the pits. Will indexes continue to climb the wall of worry, or is a rug pull on the horizon? Let’s dig into the charts and see how the week shaped up!

Weekly Analysis

SPY (SPDR S&P 500)

After a powerful gap-up on Wednesday, the SPY ETF stayed strong into the weekend, holding the gap and closing at $542.78 (+1.64%). The price now sits right below the 1.618 golden Fibonacci extension from the March highs, a key level to gain for a continuation move in the weeks to come.

This is a daily chart of the SPY index.

QQQ (Invesco QQQ Trust)

The QQQ ETF was in a league of its own this week, closing well above the 1.618 golden Fibonacci extension at $479.19 (+3.51%). With AAPL leading the charge off the heels of its blockbuster WWDC event, this index is now showing its highest RSI reading since December 2023.

This is a daily chart of the QQQ index.

IWM (iShares Russell 2000)

The small caps continued their doldrums this week, filling Wednesday’s gap up and closing nearly at the lows of the week at $198.73 (-1.22%). On Friday, the price also failed below the year-to-date anchored VWAP, which means the average buyer in 2024 is now underwater. If previous losses of this level are any indication, we could be stuck below it for a few weeks.

This is a daily chart of the IWM index.

Earnings

This is an image of this week's most important earnings results.

Notable Results

ADBE (Adobe)

  • EPS: $4.48  vs  $4.39 est 
  • SALES: $5.31B  vs  $5.29B est

AVGO (Broadcom)

  • EPS: $10.96  vs  $10.84 est
  • SALES: $12.49B  vs  $12.03B est

ORCL (Oracle)

  • EPS: $1.63  vs  $1.65 est
  • SALES: $14.30B  vs  $14.55B est

ADSK (AutoDesk)

  • EPS: $1.87  vs  $1.77 est
  • SALES: $1.42B  vs  $1.39B est

RH (Restoration Hardware)

  • EPS: $($0.40)  vs  $(0.12) est
  • SALES: $726.96M  vs  $724.70M est

PLAY  (Dave & Buster’s)

  • EPS: $1.12 vs  $1.70 est
  • SALES: $588.10M  vs  $621.26M est

CASY  (Casey’s General Stores)

  • EPS: $2.34 vs  $1.72 est
  • SALES: $3.60B  vs  $3.48B est

FCEL  (FuelCell Energy Inc.)

  • EPS: $($0.07) vs  $(0.08) est
  • SALES: $22.42M  vs  $21.35M est

What’s Happening Now

AAPL (Apple)

Apple has shown impressive performance in July over the past 8 years, boasting a remarkable 100% win rate and a mean return of +8.23%. This trend is particularly noteworthy given the recent surge following the WWDC24 event that sent Apple to fresh ATHs.

This is an image of an apple seasonality chart

OXY (Occidental Petroleum)

Warren Buffett’s Berkshire Hathaway has boosted its stake in OXY, taking advantage of the 17% decline since April 15. These purchases bring Berkshire’s total share count to 252.3 million, worth over $15 billion, firmly securing OXY as his 6th largest holding.

This is an image of Berkshire's recent OXY buys.

NVDA (Nvidia)

As NVDA continues its march higher, insiders have started to come out of the woodwork to sell some shares. Tench Coxe, Nvidia’s third-largest shareholder, cashed in $120M worth of shares that he purchased for $0.82 in 1997, for an insane 304,375% return.

This is an image of NVDA's recent insider transactions.

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.