Weekly market news analysis

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21.07.2023
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The week from July 17 to July 21 was relatively quiet on the market of high-risk assets. The news “calm” was noticeable, so there were no special movements on the market.

🟡 The reporting season has officially started on the stock market. This week, companies such as: Tesla, Netflix, and others reported. Tesla’s stock was standing still after the report, but it fell as the conference call with top management began.

The average price of a Tesla car in the second quarter was just over $45,000, down slightly from the first quarter and much lower (nearly $56,000) than a year earlier. The company is producing more low-priced autos. That’s squeezing margins.

Tesla has a growing inventory of unsold autos and for that reason, the stock price is down. 

🟢 Netflix reported an unexpected jump of 5.89 million subscribers in the June quarter. But the company’s revenue grew less than expected.

Overall, the report is good. The price fell, most likely due to profit taking by investors who managed to buy NFLX at a discount in Q1 and Q2 2022. 

🟢 S&P 500 is up 0.88%. Oscillators are signaling an oversold market, and many economic indicators are pointing to a growing stock market bubble and the beginning of a recession. The S&P 500 has been rising for almost 2 months without a correction of 1% (or more) (longest streak of gains since late 2021). Be prepared for moves to the downside. 

🔴 Nasdaq is down 0.70% – market participants are pouring capital from growth to value stocks. 

Typically, the volatility index is up in August. It is recommended to pay special attention to your risk management in the coming month as the market could start a correction at any time.

🟢 Cryptocurrencies also felt the capital spillover from VTS to altcoins. This has continued for the 2nd week in a row. Some altcoins are behaving much stronger than VTS. The first cryptocurrency fell below the psychological level of $30,000. If consolidated under it, VTS may go to $28,500. 

🟡 All in all, there was a lot of good news on this one on the crypto market. But the rate of major cryptocurrencies has hardly changed. The consolidation movement has been going on for a month. The market continues to “tighten the spring” before a strong movement to one side. This can be seen in the trading volume, which is falling. Market participants are in the waiting mode to join sellers or buyers at a chance.

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