The Trader Harbor
  • Business
  • Politics
  • World News
  • Stocks
  • Business
  • Politics
  • World News
  • Stocks

The Trader Harbor

Stocks

Big Tech Earnings, Fed Meeting, Jobs Report: Will They Add More Pressure to the Stock Market?

by admin July 31, 2024
July 31, 2024
Big Tech Earnings, Fed Meeting, Jobs Report: Will They Add More Pressure to the Stock Market?

Last week, there was a noticeable change in investor sentiment. We have so much data coming out this week, and much will rest on how the trading week ends. The S&P 500 index ($SPX) broke the uptrend, and on Tuesday, it closed at the 50-day simple moving average (SMA).

However, after the close, Microsoft (MSFT) reported earnings. The stock price dropped over 30% in after-hours trading. Although the stock recovered some of those losses, it’s possible that other stocks that are reporting earnings this week—Amazon.com, Inc. (AMZN), Apple, Inc. (AAPL), and Meta Platforms, Inc. (META)—could add downside pressure in the next few days.

Will Investors Buy the Dip or Will There Be More selling?

There’s no telling how the market will react to the rest of the big tech earnings. But don’t forget that in addition to these earnings there’s the Fed meeting on Wednesday and the July jobs report that will drop on Friday.

If investors continue to sell equities, where will they invest their cash? For a while, the narrative was that there was rotation into small-cap stocks. But looking at the daily chart of the iShares Russell 2000 ETF (IWM) below, the upside movement seems to be taking a breather.

CHART 1. ARE SMALL-CAP STOCKS SHOWING SIGNS OF EXHAUSTION? While IWM is trading above its 10-day exponential moving average (EMA), the price action in the last two days indicates more selling pressure. Chart source: StockChartsACP. For educational purposes.

So, maybe the rotation is out of equities and into a “flight to safety” asset class, such as precious metals and bonds. This necessitates pulling up a chart of the SPDR Gold Shares ETF (GLD) and the iShares Silver Trust (SLV). You can see in both charts that there was a rally, but not necessarily one with huge momentum.

CHART 2. GOLD AND SILVER SAW SOME UPSIDE MOVEMENT. GLD traded above its 20-day SMA, but SLV still has some catching up to do before the price move can be declared an uptrend. Chart source: StockChartsACP. For educational purposes.So, if there’s no gold or silver rush, are investors flocking to bonds? It’s worth looking at the weekly chart of iShares 20+ Year Treasury Bond ETF (TLT). After a steady downtrend, bond prices are trying to break out of a downtrend. The downtrend line (blue dashed line) is broken, TLT is trading above its 10-week exponential moving average (EMA), and it looks like a consolidation pattern is forming. A clear breakout above this consolidation could be a reason to give bonds some love. Bonds could make a big move soon.

CHART 3. ARE BONDS GETTING READY TO BREAK OUT? It’s hard to say, especially ahead of a FOMC meeting. Chart source: StockChartsACP. For educational purposes.

Looking at the above charts, it appears that traders are waiting for the rest of the week’s data to be released. Remember, this is a weak seasonality period, so it could be some time before we can see a clear directional move in any asset class. 

Volatility is also up. The Cboe Volatility Index ($VIX) is above 17, which is relatively high after a long period between 12 and 15.

Closing Position

Tomorrow, the world will hear from Fed Chairman Jerome Powell. The stock market has priced in an interest rate cut in September. Will he hint at more rate cuts this year, or will he continue to focus on the state of the US economy as he usually does? Stay tuned!



Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

0
FacebookTwitterGoogle +Pinterest
previous post
New Secret Service chief grilled on ‘pattern of negligence’ within agency after Trump assassination attempt
next post
Texas AG wins $1.4B settlement from Facebook-parent Meta over facial-capture charges

Related Posts

Identifying GREAT Trades and Looking Ahead to 2025...

December 14, 2024

An Oversold Bounce is One Thing – A...

April 15, 2025

How to Trade Gaps Up (and Down) After...

October 26, 2024

Volatility ($VIX) May Be Providing Clues of a...

February 4, 2025

The Growth Trade is Back!

August 14, 2024

The Halftime Show: 100th and LAST Show!

March 9, 2024

Joe Rabil’s Undercut & Rally Pattern: From DROP...

June 23, 2025

CrowdStrike’s Epic Fail: Here are the Critical Trading...

July 24, 2024

Hedge Market Volatility with These Dividend Aristocrats &...

June 4, 2025

EQUITIES HIT ALL TIME HIGHS AS TECHNOLOGY JOINS...

May 21, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • The Real Drivers of This Market: AI, Semis & Robotics

      July 22, 2025
    • Harvard, Trump battle for billions in federal funds as judge weighs next steps

      July 22, 2025
    • Congressional Republicans face bruising battle to avoid government shutdown

      July 22, 2025
    • Iran seeks China, Russia help to stall UN sanctions ahead of nuclear talks with Europeans

      July 22, 2025
    • Obama-era officials mum on allegations of ‘manufactured’ intelligence launching Trump-Russia probe

      July 22, 2025
    • Hunter Biden special counsel got ‘one resume’ from DOJ to help prosecute president’s son

      July 22, 2025

    Categories

    • Business (1,299)
    • Politics (4,050)
    • Stocks (1,536)
    • Uncategorized (45)
    • World News (1,292)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: TheTraderHarbor, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 thetraderharbor.com | All Rights Reserved