- Moving the markets
The S&P 500 ticked upwards today, catching a lift from Nvidia’s big reveal at their AI conference. Wall Street’s attention, however, was split as eyes turned to the Federal Reserve’s two-day policy pow-wow.
Nvidia, the tech world’s darling, nudged up 1% as investors chewed over the news from its GTC Conference. CEO Jensen Huang showcased the new AI chip, Blackwell, claiming it’s a powerhouse compared to its predecessors. With the stock’s year-to-date rally at a whopping 78%, some investors might be tempted to pocket their gains after the big announcement.
Super Micro Computer, the builder of Nvidia’s AI server dreams, saw its shares dip by 9% amid talk of a share offering. Yet, with a 250% surge this year and a recent S&P 500 induction, they’re not exactly down and out.
Inflation’s cautionary tales have traders on edge, pondering if the Fed will play it safe with interest rates. But fed funds futures are betting big (99% big) that rates will stay put this week.
As the Fed wraps up their March meeting, don’t hold your breath for any interest rate drama. The market’s not betting on it, not now, not even at the next meeting.
Oil, dubbed Black Gold, took the day’s top spot, with WTI prices hitting a high note at $84, a peak unseen since the yuletide season. Rate-cut hopes took a tumble, bond yields got cold feet, and bitcoin did a quick dip and recovery. The GBTC’s sudden drop? Just a hiccup.
With the Fed’s upcoming announcement and the market buzzing about no rate cuts in 2024, the question is: will the indexes ride the wave of relief or brace for a splash?
2. Current “Buy” Cycles (effective 11/21/2023)
Our Trend Tracking Indexes (TTIs) have both crossed their trend lines with enough strength to trigger new “Buy” signals. That means, Tuesday, 11/21/2023, was the official date for these signals.
If you want to follow our strategy, you should first decide how much you want to invest based on your risk tolerance (percentage of allocation). Then, you should check my Thursday StatSheet and Saturday’s “ETFs on the Cutline” report for suitable ETFs to buy.
3. Trend Tracking Indexes (TTIs)
After the market opened, both the S&P 500 and Nasdaq initially experienced declines. However, optimism grew in anticipation of the Federal Reserve’s interest rate decision, leading to a rebound and subsequent gains for all three major stock indexes.
Similarly, our TTIs also saw moderate increases.
This is how we closed 3/19/2024:
Domestic TTI: +9.84% above its M/A (prior close +9.21%)—Buy signal effective 11/21/2023.
International TTI: +9.70% above its M/A (prior close +9.38%)—Buy signal effective 11/21/2023.
All linked charts above are courtesy of Bloomberg via ZeroHedge.
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