Good evening. Stocks surged and the S&P 500 saw new all-time highs once again. Netflix will be the first stock from the big tech to report Q2 earnings this week, with the others following the week after. Here are the top stocks to watch this week and what’s moving the markets.

👋 Also welcome to the 286 new members who have joined since last Sunday! If you haven’t subscribed yet, join 9,379 traders & financial enthusiasts who have decided to get smarter with Illyrian News.

Top Stocks & Setups To Watch This Week

• $WFC
Break above 56.92 🎯 58.66 & 60.16
• $MCD
Break above 257.60 🎯 261.79 & 266.36
• $ROKU
Break above 63.76 🎯 66 & 68.38
• $MU
Break below 128.28 🎯 123 & 117.81
• $META
Break above 512.70 🎯 523.57 & 540.87
• $AMZN
Break below 191.70 🎯 187.34 & 183

KV’s S&P 500 Analysis

KV here with your weekly SPY levels! The S&P 500 made new all-time highs again last week, pushing just a little bit above the $560s which we talked about last week as being the next big resistance. We have another big week ahead of us, as you’ll read below, especially with the mega-tech earnings starting to report now as well. If I’m being a little bit biased, I would like to see a pullback down to the $540s before the market runs to new all-time highs.

Midyear Market Recap

Economic Moderation

The U.S. economy has cooled from 2023's above-trend growth, with GDP growth slowing to 1.4% annualized in Q1 and expected to continue moderating due to a normalization in the labor market and softening consumption. Inflation data has been favorable, with June CPI at 3.0%. The Fed's potential rate cuts in September or December suggest declining short-term yields and opportunities in intermediate and long-term bonds, which can lock in rates longer.

Equity Leadership

Technology-focused sectors will continue to play significant roles in portfolios, supported by strong earnings and cash positions. However, we anticipate broader market leadership beyond mega-cap tech. The U.S. election cycle may cause short-term volatility, but markets typically recover post-election. Internationally, a modest eurozone recovery and easing inflation pressures suggest developed-market stocks have catch-up potential. Chinese policy measures have sparked a Q2 stock rebound, though its sustainability remains uncertain.

Election Impact

U.S. budget deficits over 6% of GDP, coinciding with above-average GDP growth, indicate a need for fiscal restraint. The $35 trillion government debt is substantial but not yet limiting borrowing at reasonable rates. Trade with China will likely be a contentious election issue, potentially raising inflationary risks through tariffs. Despite election-driven uncertainties, we believe the Fed will act based on inflation and economic data, supporting favorable economic and investment conditions.

Coming Up…

Another week with Fed Chairman Powell on the calendar, where he will speak Monday at 12:00 PM EST. There are not many important economic releases this week, but Retail Sales on Tuesday will be closely watched as well as OpEx day being this Friday. On the earnings front, NFLX, TSM, GS, UAL, BAC, UNH, IBKR, and JNJ are expected to report this week.

Key Headlines We’ve Been Reading

This is what’s caught our eye over the past 7 days.

• Hedge funds that piled into big Tesla short stung by huge rally.
• Paramount agrees to merge with Skydance, ending monthslong negotiations and Redstone era.
• Elon Musk beats $500 million severance lawsuit by fired Twitter workers.
• Donald Trump teases Marco Rubio as potential VP pick.
• Nike brings back retired executive to fix slumping sales.

Trading Rule Of The Week

That was it for this week!

Stay safe,
KV 👋

Week #29 | July 14, 2024

Like Illyrian News? Share it with your friends, family, and colleagues who need to stay on top of the market and earn awesome rewards!

Your referral count: 0, only 1 referral away from winning 50% Off First Month Coupon From KV’s Live Trading Room.

Or copy & paste your referral link to others:
https://news.illyrianoptions.com/subscribe?ref=PLACEHOLDER

Like getting this newsletter, but feel like you could learn more from KV & the team? Find out some of the frameworks and strategies that KV’s private mentorship clients are using to hit their trading goals. Book a free discovery call here.

Want to sponsor this newsletter? Reply to this email with the word PARTNER and we’ll get back to you for further details.