Weekly Market Update 29 - 04 - 2022

Welcome to your Weekly Market Update

Our students are enjoying the live trading room sessions, we saw another great week unfold with 4 profitable trades and 1 break even, leaving us with 2.01% profit on Oil and 1.54% on the stock market using our AI strategy.

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The  markets sold off after the The Federal Reserve pointed towards harsher monetary policy, China have enforced more Covid-19 lock downs and the continuation of the Russia – Ukraine war. Are we moving into a technology sector lead recovery within the markets? As we see the Nasdaq push higher after making new lows for the year?

Chart of the Nasdaq.

We have seen mixed earnings by some of the largest companies that could have accounted for more buying pressure within the markets, the likes of Amazon and Google missed analysts’ expectations leading to selling pressure. Apple although beating expectations, reported a possibly $8 billion hit from supply constraints. This in turn has put a doubt in the mind of investors hoping to see a strong recovery.

But we did see Facebook (Meta platforms Inc.) and Microsoft Inc. post better than expected results and although investors have been tentative when it comes to buying stocks at this present time, we have seen their stock prices climb. Microsoft by 7%, and Facebook by a whopping 17%!

This being said, the reason why investors are still not confident of a market recovery is because many analysts across the globe still believe we may see a recession building up, as they predict U.S. interest rates may rise to 5-6% before we see inflation brought under control.

However, we have still been able to spot opportunities throughout these volatile markets. Utilising the Live Trading Room, trading volatile oil markets and our Blueprint strategy on the Stock Market.

Eli Lilly & Co (LLY) played out fantastically from a level of demand that we had been watching attentively since mid-March. After breaking new ground and creating new all-time highs, we saw the market come back down to what we refer to as a ‘perfect flip level’.

Chart of LLY.

There is also a potential opportunity looming on Tesla, after we have seen the market digest the news of Elon Musk purchasing Twitter. News of how he will fund the deal, a long against his Tesla shares as well as liquidating Tesla shares, in turn led to a significant drop in price. Allowing us to focus on the Average Index strategy to take advantage.

Chart of Tesla.

Until the next week’s Market Updates…Have a great trading week!

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