- Moving the markets
In today’s financial landscape, the S&P 500 experienced a downturn as investors juggled the latest corporate earnings with rising yield concerns and geopolitical tensions.
Federal Reserve Chair Powell’s remarks suggested that interest rates might remain high, dampening hopes for rate cuts and driving the 2-year yield above 5% for the first time since last November.
Despite the uncertainty, there’s a silver lining: most of the S&P 500 companies that have reported earnings so far have surpassed expectations, offering a glimmer of optimism. However, the persistence of higher interest rates has cast a shadow over this positive trend, with the 10-year U.S. Treasury yield soaring past the significant 4.6% threshold.
Globally, the market’s pulse quickened with news of Iran’s missile and drone strikes on Israel, contributing to a cautious sentiment. This unease was mirrored in the bond market, where yields surged, leading to a tumultuous day that saw the S&P 500 and Nasdaq close in the red.
Amidst this, the MAG7 stocks remained steady, the dollar saw modest gains, while crude oil prices held steady, and gold reached a new record closing high.
As gasoline prices continue their upward trajectory, one can’t help but ponder:
Will the now half empty Strategic Petroleum Reserve be tapped once more to temper the rising fuel costs?
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)
Throughout the day, the major stock indexes experienced significant fluctuations but ultimately ended without any notable gains, as both the S&P 500 and Nasdaq finished the day with losses.
Similarly, our TTIs were affected by the overall market downturn and closed slightly lower than the previous day.
This is how we closed 4/16/2024:
Domestic TTI: +5.27% above its M/A (prior close +5.86%)—Buy signal effective 11/21/2023.
International TTI: +5.46% above its M/A (prior close +6.59%)—Buy signal effective 11/21/2023.
All linked charts above are courtesy of Bloomberg via ZeroHedge.
———————————————————-
WOULD YOU LIKE TO HAVE YOUR INVESTMENTS PROFESSIONALLY MANAGED?
Do you have the time to follow our investment plans yourself? If you are a busy professional who would like to have his portfolio managed using our methodology, please contact me directly to get more details.
—————————————————————-
Contact Ulli