Market Commentary/Forecast for July 8, 2024
Earnings season will kick off this Thursday, but the magnificent 7 stocks which have been driving most of the market gains in recent months, won't begin reporting until the 23rd. META, AMZN, and AAPL report on the week of the 29th:
With intermediate cycles beginning to rise after July 1st and crossover averages turning bullish last week, the market's bullish outlook for July appears to be taking shape. That's why I anticipate earnings numbers will also sustain the market's upward momentum over the next few weeks.
Projected cycles indicated a buyable low around July 8, and current charts confirm we are in that period now. I plan to take advantage of intraday dips on the hourly charts as buying opportunities and will implement layered stops below the daily 2/3 and 3/5 crossovers for early protection. Read more on the recent July 2024 Stock Market Outlook post.
Understanding the Magnificent 7 Stocks
The term "Magnificent 7" refers to seven major stocks that have had a significant impact on the market due to their substantial market capitalization and consistent performance. These stocks include Meta Platforms (META), Amazon (AMZN), Apple (AAPL), Microsoft (MSFT), Tesla (TSLA), Alphabet Inc. (GOOGL), and Nvidia (NVDA).
The Impact of the Magnificent 7 on Market Trends
These stocks have been instrumental in driving market gains, particularly in 2024. Their performance often sets the tone for the broader market, making their earnings reports highly anticipated events. As we approach the earnings season, it’s crucial to keep an eye on these stocks as their results can influence market sentiment and trends.
Earnings Season Outlook for the Magnificent 7
Earnings reports for the Magnificent 7 are expected to start rolling in from July 23. Here’s a breakdown of what to watch for:
Meta Platforms (META): Scheduled to report in the last week of July, investors will be looking at user growth, ad revenue, and advancements in the metaverse.
Amazon (AMZN): Key metrics include e-commerce sales, AWS performance, and subscription services growth.
Apple (AAPL): Focus will be on iPhone sales, services revenue, and any new product announcements.
Microsoft (MSFT): Watch for updates on cloud services, software sales, and LinkedIn growth.
Tesla (TSLA): Key areas include vehicle delivery numbers, energy products, and updates on new models and factories.
Alphabet Inc. (GOOGL): Advertising revenue, YouTube performance, and cloud services will be in the spotlight.
Nvidia (NVDA): Investors will be interested in GPU sales, data center growth, and developments in AI technology.
Market Predictions and Strategic Insights
With intermediate cycles rising and bullish crossover averages, the market outlook for July remains positive. Here are some strategic insights for navigating this period:
1. Monitor Earnings Reports Closely
The earnings reports of the Magnificent 7 will provide critical insights into their financial health and future growth prospects. Positive results could drive further market gains, while any disappointments might lead to short-term volatility.
2. Utilize Intraday Dips for Buying Opportunities
Taking advantage of intraday dips can be a profitable strategy during this period. Look for buying opportunities on the hourly charts and implement layered stops below the daily 2/3 and 3/5 crossovers for protection.
3. Stay Aligned with Long-Term Cycles
While short-term fluctuations are inevitable, it’s essential to stay aligned with the long-term bullish cycles. This approach ensures you remain positioned for growth while mitigating the risks associated with short-term volatility.
Additional Information on Magnificent 7 Stocks 2024
What Are the Magnificent 7 Stocks?
The Magnificent 7 stocks 2024 refer to seven key players in the stock market: Meta Platforms, Amazon, Apple, Microsoft, Tesla, Alphabet Inc., and Nvidia. These companies have significant market influence due to their size, market capitalization, and consistent performance.
Why Are the Magnificent 7 Stocks Important?
These stocks are crucial because they often set the tone for the broader market. Their performance can influence market sentiment and trends, making them vital indicators for investors and traders.
How to Invest in the Magnificent 7 Stocks?
Investing in the Magnificent 7 stocks involves monitoring their financial health, market trends, and earnings reports. Diversifying your portfolio to include these stocks can provide stability and growth potential.
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