Is the Bull Run Over? $TSLA $GOOG $QQQ $DJT $CRWD

Alright folks, let's dive into last week's market action. The S&P 500 dropped about 2% and the Nasdaq fell 3.7%, ending its six-week winning streak.

On the macro side, president Biden dropped a bombshell by announcing he’s not running for re-election and is backing Vice President Harris as the Democratic presidential candidate. Now, investors are wondering if they should stick with their “Trump trades” given Biden’s decision.

In my opinion, this announcement brings a lot more uncertainty. Traders will be weighing whether Harris can gather enough momentum to challenge Trump. This usually puts the market into a cautious mode—selling off those hot Trump-related stocks, causing some short-term volatility.

the S&P 500weekly chart formed a bearish engulfing candlestick last week, signaling the start of a short-term pullback. If we look at previous short-term pullbacks on the weekly chart, they also started with a bearish engulfing candlestick, confirming that we’re in for a short-term correction. So, if you’re trading short-term, be mindful of the pullback risk.

On individual stocks,

Tesla and Google are set to release their earnings after the market closes on Tuesday.

As for Tesla, look out for updates on automotive revenue, energy storage business, progress on Robotaxi, any news on Model 2, and whether they’re back to positive free cash flow.

Now, looking at Tesla, it’s also in a short-term pullback, breaking below the previous high-volume candlestick area, which we’ll call area A. The next support level is down at the high-volume candlestick area B. If you’re buying, it’s proabably safer to wait until the pullback ends.

As for Google, pay attention to growth in their ad and search business, especially with AI enhancements, cloud business growth, capital expenditure plans, and what they’re doing for shareholder returns.

Its stock price has broken below the trendline and is now sitting at the previous sideways support area. If it holds, there might be a short-term rebound opportunity. But for those looking to buy in for the mid-to-long term, it’s better to wait for a clearer entry signal.

Last Friday, a global IT system outage caused a lot of market chaos, and the cybersecurity company CrowdStrike took a huge hit, dropping over 11%. Interestingly, Cathie Wood, a famous investor, saw this as a chance to buy and picked up shares of CrowdStrike despite the drop.