- Moving the markets
Today’s stock market presented a dynamic landscape, with investors casting their gaze forward to upcoming corporate earnings and a pivotal labor report due later in the week.
Amidst this anticipation, the market witnessed a diverse range of earnings outcomes. Qualcomm, the semiconductor giant, saw its shares climb by 9% following the announcement of earnings that surpassed expectations, coupled with a robust revenue forecast. Conversely, DoorDash experienced a 13% decline in its share price after its loss per share exceeded the projections set by analysts. In a remarkable turn of events, Carvana’s shares skyrocketed by 34%, buoyed by the company’s announcement of record-breaking earnings after Wednesday’s closing bell.
These fluctuations came on the heels of a tumultuous day on Wall Street, where investor sentiment was influenced by the Federal Reserve’s decision to maintain the status quo on interest rates.
Jerome Powell, the Fed Chair, in his press briefing, virtually eliminated the possibility of an interest rate hike as the Fed’s forthcoming action. This stance appeared to provide temporary relief to the markets. However, with persistent inflation showing no signs of abatement, Powell’s cautious remarks can be likened to a balancing act on a precarious tightrope.
In the realm of technology, U.S. equities halted their two-day downturn as tech stocks experienced a surge in the latter part of the trading session. The focus of Wall Street has now shifted to Apple’s post-market earnings announcement.
There is a buzz among some analysts who predict that Apple may unveil a significant stock repurchase scheme to counterbalance what could be an underwhelming earnings report. This speculation arises amidst a backdrop of numerous research reports over recent months that suggest a decline in iPhone sales internationally.
In the broader financial landscape, bond yields continued their descent for a second consecutive day. Gold prices remained relatively stable, while Bitcoin ETFs enjoyed a notable increase of nearly 4.5%. The S&P 500 index made headway but found itself wedged between its 50-day and 100-day moving averages.
As we stand at this crossroads, one can’t help but ponder: With such a confluence of factors at play, which direction will the S&P 500 take from here?
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)
Early on, the major stock indexes experienced a slight decline, which presented an opportunity for the dip buyers to purchase stocks at lower prices. As the trading session progressed, these stocks successfully retained their early increases in value.
In parallel, our TTIs mirrored this positive movement and concluded the session with gains as well.
This is how we closed 5/02/2024:
Domestic TTI: +6.24% above its M/A (prior close +5.56%)—Buy signal effective 11/21/2023.
International TTI: +7.34% above its M/A (prior close +6.58%)—Buy signal effective 11/21/2023.
All linked charts above are courtesy of Bloomberg via ZeroHedge.
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