Felix Prehn, the founder of Goat Academy, believes the stock market may be reaching a key turning point. He shares his thoughts on recent market events, important stocks, and what investors should watch for next.
Oracle’s Strong Performance and What It Means
Oracle, a major technology company, recently reported strong earnings. Their revenue from cloud services, including Amazon, Google, and Microsoft Azure, grew by 115% in just one quarter. This means Oracle is growing much faster than many expected. According to Felix Prehn, those who bought Oracle at the right time could have seen gains of 15% or more in less than two weeks. He explains that spotting these “breakouts”—when a stock price rises quickly after passing a certain level—can help investors find good opportunities.
Oklo and Other Big Movers
Another company Felix highlights is Oklo, which makes small, portable nuclear reactors. Oklo’s stock jumped 128% in a month after winning a contract to power an Air Force base. Felix points out that while not every pick is a winner, learning to read stock charts can help investors find these big movers before they happen.
Understanding Market Resistance
Felix Prehn explains a key idea called “resistance.” In simple terms, resistance is a price level where a stock or the whole market has trouble moving higher. This happens because many investors decide to sell at that level. For example, the Nasdaq index is facing resistance around 538 points, and the S&P 500 is seeing resistance near 6,100 points. When the market hits these levels, it often moves sideways for a while before deciding whether to go higher or lower.
The Impact of Tariffs and Economic Data
Recent news about possible new tariffs from the United States has made some investors nervous. Tariffs are taxes on goods from other countries, and they can make products more expensive. However, Felix notes that some countries may be exempt if they are negotiating with the U.S. This could limit the negative impact.
Felix also discusses the Producer Price Index (PPI), which measures how much it costs to make goods. The latest PPI numbers were as expected, which is good news for inflation. Inflation is when prices go up over time. Stable inflation helps the market stay healthy.
Lessons from Boeing’s Stock
A tragic plane crash involving a Boeing 787 led to a drop in Boeing’s stock price. Felix explains that even with this drop, investors who bought at the right time are still up. He reminds readers that it often takes a long time to find out who is responsible for such accidents, and the stock usually recovers unless there is clear evidence of a major problem.
The Importance of Learning and Mentorship
Felix Prehn encourages investors not to compare themselves to others or feel discouraged. He believes that learning from mentors and understanding how to read stock charts can help anyone improve their investing skills. Success comes at different times for everyone, and the best way to get better is to keep learning.
For more about Felix Prehn and his approach to investing, visit the Felix Prehn Goat Academy About page.