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SUMMARY
Amit Kukreja and guest Jason provided a comprehensive review of the final trading day of August, highlighting Tesla’s rally ahead of its Cyber Cab event and analyzing technical levels across major tech and semiconductor stocks. The discussion covered end-of-month market dynamics, regulatory developments, and detailed technical outlooks for equities and cryptocurrencies as investors look toward September’s catalysts.
MAIN POINTS
- Tesla rallies 5% ahead of its Cyber Cab event, while Amazon falls 3% on FTC lawsuit news.
- Details emerge about Tesla's September 3 Cyber Cab event, including potential commercial rollout and software updates.
- Semiconductor stocks like Micron and AMD receive late-session buying, attributed to month-end rebalancing.
- Amazon faces allegations from the FTC and multiple states over ad auction manipulation, impacting its stock price.
- August trading ends with the S&P 500 up 2.6% for the month, and notable gains in software and select tech names.
- Former President Trump comments on oil deals and Iran, with implications for energy markets and geopolitical risk.
- Apple's strong year-to-date performance is noted, with Tim Cook's final day as CEO and a new leadership era beginning.
- Technical analysis segment begins, with Jason joining to discuss September market seasonality and upcoming earnings.
- Tesla's Cyber Cab sightings increase, fueling speculation about the event's impact on the stock and autonomous vehicle rollout.
- Jason outlines technical levels for Tesla, projecting a move toward $415–$420 and discussing potential resistance.
- SPY analysis focuses on resistance and support levels, with attention to upcoming non-farm payrolls and September seasonality.
- Broadcom’s earnings preview suggests options may be underpricing expected volatility, with technical support and resistance mapped out.
- NeoCloud and data center stocks like Nebius are discussed, with technical setups and political risks considered for future moves.
- Technical breakdowns for Corweave, Iran, and other AI infrastructure stocks highlight consolidation and key support areas.
- Nvidia’s post-earnings action is reviewed, with resistance at $220–$230 and a neutral outlook pending macroeconomic data.
- AMD is described as heavy but holding support, with potential downside to $340–$330 if broader market weakness emerges.
- Space sector stocks like Rocket Lab and AS are seen in accumulation phases, with strategies favoring selling puts over buying calls.
- Qualcomm shows constructive technicals after a period of consolidation, with a potential move toward $200–$220 if support holds.
- Amazon, Meta, and Google are analyzed for support and resistance, with regulatory headlines and sector rotation influencing price action.
- Micron and SanDisk are consolidating, with September expected to bring a decisive move as memory sector volatility subsides.
- ServiceNow and Zeta maintain strong technical positions, while Palantir and Reddit are monitored for breakout or consolidation patterns.
- Robinhood and SoFi are in consolidation, with technical setups suggesting potential for future upside if support levels hold.
- AI and cybersecurity names like Palo Alto and CrowdStrike are evaluated for earnings volatility and sector valuation concerns.
- Quantum computing stocks such as INFQ and QBTS are discussed, with technicals indicating resistance and sector-wide patterns.
- Apple’s technical outlook is constructive ahead of its September event, with accumulation suggested near $313–$320.
- Bitcoin and Ethereum are both at resistance, with recommendations to wait for pullbacks or clear breakouts before adding positions.
- The episode concludes with a look ahead to the September 10 webinar and the importance of upcoming macroeconomic data for market direction.
DETAILED ANALYSIS
The final trading day of August saw significant activity across major technology and semiconductor stocks, with Tesla leading the headlines due to anticipation surrounding its upcoming Cyber Cab event. Tesla’s stock surged approximately 5%, supported by increased trading volume and growing excitement about the potential commercial rollout of autonomous Cyber Cabs. The event, scheduled for September 3 at the Texas Gigafactory, is expected to showcase the first large-scale deployment of these vehicles, with speculation about pre-order availability and software advancements.
Observers noted sightings of Cyber Cabs in Texas and Florida, and regulatory filings indicated the addition of dozens of vehicles to Tesla’s robo-taxi fleet. The market’s enthusiasm was tempered by the possibility of a “sell the news” scenario, a pattern seen in previous Tesla events, but the scale of the rollout and potential for fleet operators and consumers to participate in the Tesla Network were seen as bullish catalysts.
Elsewhere, Amazon’s stock faced pressure after the Federal Trade Commission, along with 22 states, filed a lawsuit alleging manipulation of ad auctions and non-disclosure of increased advertising costs. The complaint, which centers on practices dating back to 2018 and involving tens of billions in revenue, reflects the regulatory scrutiny facing large technology firms. Similar legal challenges have affected other major players like Google and Meta in recent years.
Despite the headline risk, the broader market appeared resilient, with the S&P 500 finishing August up 2.6%. Software stocks, including ServiceNow and Palantir, posted strong monthly gains, while energy and select semiconductor names also outperformed.
The session was marked by notable end-of-month rebalancing activity, with late-day buying observed in Micron, AMD, and other semiconductor stocks. This phenomenon, attributed to portfolio adjustments by institutional investors, resulted in sharp moves in both directions for various sectors. For example, Microsoft and the IGV software index experienced selling pressure, while underperformers from earlier in the month saw renewed buying.
The discussion noted that such rebalancing is common at month-end and can create temporary volatility disconnected from underlying news flow.
Technical analysis formed the core of the program’s second half, as Jason joined to provide detailed chart breakdowns for a wide range of equities. Tesla was projected to move toward the $415–$420 resistance zone, a level corresponding to previous all-time highs and significant technical resistance. The analysis emphasized that while the current rally is tradable, a sustained breakout above $415 would be required to shift the long-term outlook decisively bullish.
Until then, the move is seen as a bounce within a defined trading range, with potential for a pullback if resistance holds.
The S&P 500 (SPY) was analyzed with a focus on key support at 762 and resistance in the 770s. The outlook for September was described as neutral to cautiously optimistic, pending the outcome of non-farm payrolls and a cluster of upcoming earnings reports. The historical tendency for September to be a volatile or negative month was discussed, but recent years have seen more mixed results, with several green Septembers despite the broader seasonal narrative.
The technical setup suggests that a move above 770 could trigger a quick rally to 773–774, while a failure to hold support could see a retracement to the mid-750s.
Broadcom’s upcoming earnings were highlighted as a potential volatility event, with options markets possibly underpricing the expected move based on historical earnings reactions. Technical support was identified near $360, with resistance around $430. The analysis suggested that a significant move in either direction is possible, and a straddle strategy (buying both calls and puts) could be advantageous given the statistical edge.
The program also covered the NeoCloud and data center trade, focusing on stocks like Nebius, Corweave, and Iran. These names have faced political headwinds related to data center buildouts and regulatory scrutiny, but technical setups indicate that key support levels are being tested. Nebius, for example, is approaching a high-risk-reward entry zone near $190, with the potential for a rebound if support holds.
The discussion noted that data centers typically do not create many permanent jobs, and political opposition may be more headline-driven than fundamentally disruptive. However, a failure in one of the major players could trigger broader sector weakness, presenting buying opportunities in the higher-quality names.
Nvidia’s post-earnings performance was reviewed, with the stock trading near technical resistance at $220–$230. Despite a strong quarterly report, the outlook was described as neutral in the short term, with macroeconomic data such as non-farm payrolls expected to have a greater immediate impact than company-specific news. Support at $213 was identified as a key level to watch, and a breakout above $225–$240 could set up a move toward $260.
The panel advised caution with covered call strategies, suggesting that protection may be preferable given the potential for sharp moves in either direction.
AMD was characterized as heavy but stable, holding above $400 but with the risk of a technical pullback toward $340–$330 if market conditions deteriorate. The analysis suggested that selling longer-dated calls could provide downside protection, while short-term trading opportunities may arise from volatility around key support levels.
Space sector stocks, including Rocket Lab and AS, were described as being in accumulation phases. The preferred strategy was to sell puts rather than buy calls, capitalizing on the likelihood of continued consolidation rather than an imminent breakout. Support and resistance levels were mapped out, and the importance of patience in these names was emphasized.
Qualcomm emerged as a constructive setup after a 45-day consolidation period and a sweep of post-earnings lows. If support near $160–$165 holds, the stock could target $200–$220 in the coming months, with a short squeeze possible if resistance at $185 is cleared. The analysis also noted upcoming product launches and potential news catalysts that could influence the stock’s trajectory.
Amazon, Meta, and Google were each reviewed for their technical setups. Amazon’s support near $250 was seen as tradable, but the panel recommended waiting until after the current week for a clearer directional call. Meta faces resistance at $600, with accumulation favored below that level. Google is viewed as being in an accumulation phase, with a breakout above $350 needed to trigger a move toward $400–$426.
Micron and SanDisk were both described as consolidating, with September expected to bring a decisive move. The memory sector has lost some of its earlier volatility, and the panel cautioned against making large bets until a clear trend emerges. Support for Micron is in the $700s, with resistance at $1,050–$1,070. SanDisk faces a similar range, with the possibility of a 50% retracement if support fails.
ServiceNow, Zeta, Palantir, and Reddit were highlighted for their strong technical positions or potential for breakout. ServiceNow has moved above key resistance, with targets at $160 and $180 if the breakout holds. Zeta’s support at $27–$28 is confirmed, with a move toward $32–$33 anticipated. Palantir is at resistance near $185–$190, with the best-case scenario being a breakout retest and continuation. Reddit is on support at $147, with downside risk to $120 if that level fails.
Fintech names Robinhood and SoFi are consolidating, with technical setups suggesting potential for future upside if support holds. Robinhood is seen as healthy in its current range, with a breakout above $125 toward the end of the year viewed as a bullish signal. SoFi’s support at $16 is noted, with upside potential to $23–$24 if rates stabilize.
The discussion also covered AI and cybersecurity stocks, including Palo Alto and CrowdStrike. Palo Alto’s implied earnings move is seen as potentially overpriced given historical volatility, while Broadcom may be underpriced. The sector’s valuations are described as stretched, but product quality and infrastructure demand remain strong.
Quantum computing stocks such as INFQ and QBTS are discussed, with technicals indicating resistance and sector-wide consolidation. The panel noted that meaningful moves in these names would likely require broader sector momentum.
Apple’s technical outlook is constructive ahead of its September event, with accumulation suggested near $313–$320. Resistance at $320–$325 is identified, and a breakout above $335 would signal a new uptrend. The transition to a new CEO adds uncertainty, but upcoming product launches may provide a floor for the stock.
The program concluded with a review of Bitcoin and Ethereum, both of which are at resistance. The recommendation is to wait for pullbacks to support or clear breakouts before adding positions, as both cryptocurrencies have yet to confirm a new trend. Macro events, particularly non-farm payrolls, are expected to influence the next major move.
The hosts also previewed an upcoming webinar on September 10, emphasizing the importance of macroeconomic data and the four-year presidential and crypto cycles in shaping market direction for the remainder of the year.
LINKS
- Amit Kukreja's Twitter/X account for market updates and commentary.
- Amit's Deep Dives Substack for in-depth stock and market analysis.
- Free news terminal for financial headlines and market data.
- Jason's Twitter/X account for technical analysis and trading insights.
- Registration link for the upcoming free webinar on non-farm payrolls and market strategy.