No impact by buddy Jerome Powell by the FED?

Greetings Mooers!

Hope you have a wonderful trading day!

Last week was really a roller coaster  ride! 🎢🎢

Let's take a look at the polls.📊

It looks like majority of Mooers really eyeing out on MAG7.

That is great! Guess that is the reason why tech rally more than any other sectors I guess?

We better learn to lookout more in other sectors as well. There might be a silver lining.

Remember this is not Financial Advice nor a recommendation. All of the info is my own opinions. It's for educational purpose.🎓🎓🎓

Keytakeaway from this is that what I learn from Peter Lynch.

If you want to be one up on wallstreet, you got to study on the sectors that you have the expertise in by investing in the industries you are in. Say for example if you are in the Construction 🚧, try researching on construction sectors in the stock market.

Surprisingly you may have a one up compared to other people as you know the in and out of that sector. I know a lot of people from the pharmaceutical and health care 💊🏥 did really well in the stock market after researching their own sectors.

So how as a new comer we can do this on moomoo? Not a sponser by moomoo. But I love to get some one day!

All you have to do is search in market>US or MY> Investment themes or heat map.

Pictures down below!

Alright polls for the week! 📊📊📊

Now the main star Jerome Powell.

Classical economics theory states that if the Federal reserve or the Monetary policy goes dovish, that means interest rates will be cut. If interest rates cut, that will lead to discouragement of saving in the dollar and more into investments.

Now why small companies will benefit more than large companies with the interest rate cut?

The reason being that smaller companies uses debt as a leverage to grow their businesses. The lower the interest rates means cheaper borrowing and cost saving benefits in contrast to larger companies as they don't have much debts to leverage on.

Unless the large company itself has large debts such as the auto industries and machinery.

That is where Peter Lynch one up on wallstreet comes to play. highly recommended book on how to get a 10 bagger without trading. Or trade like an institution.

The Russell shows a bullish uptrend to above 2250. Do your homework on which sector benefits the most ya.

Leave it down at the comment below on which sectors will benefit in the small companies.

WSJ news summary about the Macro's

Now what intrigue me is that since NVDA is almost 10% of the Nasdaq and the S&P500. Can we say that this would be the new indicator?

Chart below:

The daily candle indicated a bullish Harami, a potential to the upside. Followed by a bullish uptrend in the MACD.

Bullish sentiments we may see within the range of resistance at 132. Bearish would see a pullback to 125.

We may see some weaknesses however it is only temporary to be pulled to the upside.

Now how would I use the NVDA indicator? in my opinion I would use the NVDA indicator to look at the outlook of investments by the AI companies.

If more and more tech from the Mag 7 decided to put more investments into deep learning, NVDA will be that shovel that will continue to sell as deep learning of AI progresses.

However if deep AI learning start to decelerate, we will also see that lesser shovels being sold and hence NVDA will dive deep.

So??? TLDR the more AI progresses and grow, the more NVDA will grow meaning more of MAG7 will grow. in other words AI indicator.

Does that means no more NASDAQ and S&P500? No is still important as both of the index still being influenced by the macro economy.

Nasdaq used to be for tech but now I see it is more of NVDA has more influence over Nasdaq for the time being.

Bullish Harami, next week pullback is possible range between 17400 to 18100.

Almost piercing may show signs of resistance from Jobless Claims. May push above 5600 more pullbacks possible to below 5400.

1. Fundamentals looks promising.

Like most rich people or upper middle class people, they like to look to a higher beauty standards. The more affluent you are the more you will start to ask the rich ladies to buy make up as an essentials to keep their man wanted to look at them more.

ULTA is a high end cosmetic services which make the brand strong for anti allergic properties.

Even in a down market, it is still a necessity to keep yourself pretty. Affluent people wants to look at their best even in the down turn. Don't ask me I used to work as an intern for Mary Kays.

Cough** cough * customer service cough **

Always see those pretty ladies and how they are always onto their make up to impress their man.

PE ratio shows a value below 20 which is Buffetts favourite metrics when buying stocks.

Technicals are testing ULTA at 390 resistance to support.

Drawbacks:

However my concern here is that cosmetics may no longer be the future.

As technology progresses. I think we are heading towards the direction of natural beauty. Keep your skin healthy is better than covering those scars. The more your scars heal the better people precieve your health.

Alright I'll end my note here folks! Let's cheer on and hope for the best that the bulls will win. Keep smiling and don't let the bears pull you down.

Bears will always paint an ugly picture of the market but keep your objectives clear. Ultimately, it is you who determine your growth of your own port.

Good luck 🍀and May the odds be ever in your favour.

Credit Author: Philippe Caudray