Market Report Aug 13 2023
Market Overview and Key Highlights:
1. Weekly Market Trend Analysis:
The beginning of August witnessed subdued trading activities. Despite a bullish candle on Monday, most trading occurred at the session's commencement.
Tuesday had a primarily negative bias, bottoming out mid-session, but regaining strength by the close. A doji formation hinted at a potential market reversal.
However, Wednesday deviated, trending downwards, and concluding near its session lows.
On Thursday, market news influenced the candlestick, extending it to the week's high. Yet, it settled midway from the prior day, as traders awaited the PPI.
Friday's session echoed the mid-week sentiments post the PPI announcement.
2. Market Predictions and Outcomes:
Anticipations leaned towards a market pullback approaching the 50 Moving Average over the past weeks. This has been realized, although not necessarily hitting precise points. Flexibility in levels of interpretation is warranted.
3. Key Economic Indicators:
The CPI and PPI remained prominent news headlines, focusing on the US market. Notably, inflation in July rose, albeit less than projections. How the Federal Reserve interprets this remains uncertain.
4. Sectorial Highlights:
The Society of Automotive Engineers intends to standardize Tesla connectors into a universal open-source system, underlining the growing momentum of Tesla's charging methodology. Its rebranding as North American Charging System (NACS) signifies a broader adoption.
5. Stock Analysis:
Netflix: Previously owned by us, Netflix's stock has seen an uptick from the previous year's lows. Maintaining its position as the leading subscription streaming service for Q2, it outpaces competitors like Amazon Prime, Hulu, and Disney+.
FOUR: We're nearing a potential buying opportunity for FOUR, given the stock's current position vis-à-vis the value index. Its declining volatility signals an organized downward trend, positioning it as a potential investment.
Microsoft: Profits were secured on our holdings since April 2020. The stock has now retraced to our exit point, entering a potential re-entry zone between $280-$315. The declining volatility makes it an attractive proposition for augmenting our existing position.
6. Market Behavior:
Seasonal market slowness was anticipated, with the pullback aligning with the forecasted trend. The market's movement has followed predictions, rendering no unusual activities.
7. Takeaway:
While the week may have been tepid in terms of bullish sentiments, strategic decisions based on comprehensive analysis continue to guide our investment approach. Future endeavours will focus on scaling into stocks such as FOUR and potentially augmenting our position in Microsoft.
Anne Chapman
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