Weekly Market Analysis: Recap and Forecast. The Week of June 10, 2024

We just closed the week over 200% ROI on $QQQ and other names straight out of our Market Forecast & Analysis. Join us today to lock in Lifetime Membership Discounted price on all subscriptions. Offer ends on Father's Day, June 16. Use Coupon Code: GOOD4LIFE. This weekly market RECAP, FORECAST and ANALYSIS is available to subscribers of our Flash Options channel ONLY! Please sign up for Flash Option program or MyCompass Pro + Flash Option Combo and get access to all of our weekly forecast - A Compass to Navigate the Stock Market!

Stock market ended the 1^st week of June at new all-time high on both the S&P500 and the Nasdaq. Technology stocks, of course, have remained the big story of 2024, and no sign of stopping yet, with $NVDA joining the $3 trillion market capitalization club. While the May jobs report sparked a selloff in Treasurys that lifted yields. Friday’s data showed the U.S. created a bigger-than-expected 272,000 new jobs in May, suggesting the economy is still strong and reducing the chances the Federal Reserve will cut interest rates soon. The unemployment rate, however, rose to 4% from 3.9%, the first time it’s hit that mark since January 2022.

This week, though, investors are in for important events, particularly on Wednesday, with CPI numbers and FOMC rate decision. CPI days and Fed days are known for market volatility; thus, we should be ready for it.  Most experts believe the Fed will leave interest rates alone. They came into 2024 expecting six to seven 0.25% reductions, but several hotter-than expected inflation readings and job reports, now have fed-funds futures traders pricing in two at best, perhaps beginning in September. However, the market keeps making new highs, even as rate-cut expectations have faded. Resilient economic data has sparked confidence in robust earnings growth this year and next year. If this trend keeps going, it will be the bigger test come during the next earnings season, when results will need to meet rising expectation, according to some wall-street experts.

On Wednesday, most of the attention will be on Chair Powell’s remarks and the update on the “Dot Plot” (Central Bank’s Summary of Economic Projections). On March dot-plot, it showed 3 quarter-point cuts in 2024. Investors will want to know how many rate cuts they’re pricing in this time. So, buckle up and go for a good ride this Wednesday. But remember, lately, the market has been making its move a day earlier, then on the day of the event.

Last week, again, $SPY and $QQQ moved exactly like we projected. We said $SPY was in $525 to $530 range, reclaimed $531 and broke over $533 for a move to new high $535. $QQQ was in $450-$455 range, went over $455, it climbed to retest $460-$461 all-time-high, then ran over $461 and traded to $464-$465. This week, $SPY is just right under $535-$536 resistance. Over $536.50, we should see it climb to $539-$540, then $543.50-$545. If it gets rejected at $335, we should see it trade back down to $530 and under $529 to $525-$524 area. $QQQ is currently in $460-$465 range with $466-$467 resistance. It may need good response from CPI numbers and FOMC to break through resistance and trade to $470-$471 and possible $475-$476. Otherwise, we should see it retest $460 support and if it cracks under that it should trade down $457-$455-$453.

We plan to focus on our FAANG’S, the $SPX and $QQQ this week coupled with other sectors’ leaders and possible 1-2 earning trades. While we welcome Fed Chair Powell and his famous microphone, let’s have a great week with some good trades. The summer is just getting started. Have a fantastic week everyone. Namaste!!!