- Moving the markets
In today’s market, the major indexes experienced a slip due to pressure on several tech companies, causing both the Nasdaq and S&P 500 to break their recent winning streaks. However, there was an exception: the Dow managed to defy the trend and extend its winning streak to six days.
Specifically, Uber shares took a hit, plummeting by 8.5% after the rideshare company reported an unexpected net loss and weaker-than-anticipated bookings revenue. Meanwhile, Intel faced its own challenges, with a decline of over 2% following the chipmaker’s downward revision of second-quarter revenue guidance.
Investors also grappled with a barrage of Federal Reserve commentary. Boston Fed President Susan Collins emphasized that the Fed’s interest rate policy would likely remain unchanged until inflation shows sustainable movement toward the central bank’s 2% target. Because of this hawkish stance, buying interest remained lackluster, resulting in a meandering session as rate cut expectations dwindled.
In other market movements, bond yields inched higher, the dollar continued its rebound, and gold traded within a narrow range. Bitcoin, on the other hand, drifted lower. However, the standout performer of the day was crude oil, with WTI prices rotating back from below $77 to above $79.
Interestingly, Bank of America recently posted a reminder: “Don’t sell in May and go away.” This advice is rooted in the historical tendency for Presidential election years to witness significant summer rallies.
Now, the question remains: Will history repeat itself?
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)
The Dow stood out by securing a modest increase. This slight uptick was an exception on a day when the absence of compelling news left traders without enough inspiration to engage in active buying.
Consequently, this lack of momentum led to a day where most indexes barely budged from their opening positions, closing nearly unchanged.
Our TTIs, which serve as a barometer for market direction, mirrored this sentiment by registering only negligible changes from their previous session’s standings.
This is how we closed 5/08/2024:
Domestic TTI: +7.86% above its M/A (prior close +7.88%)—Buy signal effective 11/21/2023.
International TTI: +8.82% above its M/A (prior close +8.84%)—Buy signal effective 11/21/2023.
All linked charts above are courtesy of Bloomberg via ZeroHedge.
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