Market Milestones: Meta Man

[Image] Happy Friday , We mentioned last week that this week would likely be a tumultuous tape for traders. It did not disappoint as traders witnessed gnarly gap downs on GOOGL and MSFT, combined with Jerome Powell's weakness. Wednesday formed a key reversal candle on the SPY, QQQ, DIA, and IWM. Since November 1st, this type of candle has been a bear trap, and this time looks to be no different. AMZN and META threw on their superhero capes and took off to save the day and the market. [Image] META added $110 billion of market cap in under 10 minutes on this earnings report! While NVDA has gotten most of the spotlight in the A.I. extravaganza, META has been experiencing one of the most extraordinary V-shaped recoveries ever seen in the stock market. The recovery that META has seen puts the Covid recovery to shame. META has moved over 400% in about 400 days! While this is less than NVDA, it is still an absolutely blistering recovery from a level where many considered META down and out. With AMZN and META earnings gaps, the market will once again be pushing into new all-time highs. After all, it had been 2 days since the SPY has seen new all-time highs, and frankly, it was getting a little uncomfortable not seeing that new daily all-time high. Glad Jeff and Mark could lend a helping hand. META [Image]( There are several divergences showing up in the markets at these extended levels. These range from RSI divergences to narrowing breadth in a rising market, to key leaders stumbling. AAPL has looked bearish for all of 2024, and its earnings confirmed this bearish sentiment. It has held the critical $180 support in the post-market, but this earnings gap is a bearish gap and go, so watch out if that support breaks down today. The market breadth has been narrowing all of 2024 as the SPY, QQQ, and DIA ripped higher. Check out the chart below, which illustrates this with the number of stocks above their 50DSMA (orange) overlaid on the SPY. This reinforces the narrative that a handful of stocks are continuing to drive this market higher. However, as long as those stocks continue to fly high, defying the laws of gravity, there is no reason that this market will turn around. Welcome to the A.I. future. SPY with S5FI Overlay [Image]( Strive On, RLT Newsletter Team [support@RLTNewsletter.com](mailto:support@rltnewsletter.com) Disclaimer: Trading involves inherent liabilities and risks. By accessing this newsletter, you acknowledge and understand the associated risks with trading and investing. This newsletter or email does not serve as a solicitation to buy or sell any security, and its content should not be construed as financial advice. The trades, analyses, and results presented are for entertainment and educational purposes only. These materials do not substitute professional advice from a qualified individual, firm, or corporation. Past performance does not guarantee future results, and simulated performance results have inherent limitations. Readers are strongly urged to consult a qualified financial advisor or professional before making any trading or investment decisions. Each individual's financial situation is unique, requiring personalized advice. No strategy or trading approach ensures profits, and market conditions can change rapidly. Participants should trade with capital they can afford to lose. This newsletter does not aim to create an advisor-client relationship, and receipt does not constitute such a relationship. Readers are responsible for compliance with applicable local laws and regulations related to trading and investing. Unable to view? Read it [online]( If you no longer wish to receive mail from us, you can [unsubscribe]( Sent from: Real Life Trading in Nashville TN 37221