- Moving the markets
Today’s financial markets saw a continuation of growth, with major indexes like the S&P 500, and Nasdaq each climbing over 1% in value. This surge was fueled by the latest jobs report, which indicated slower-than-anticipated job growth in April and a slight uptick in unemployment rates. These figures have quelled concerns about an overheated economy and have sparked optimism among traders who now anticipate the Federal Reserve might lower interest rates sooner than expected.
Despite the prevailing narrative of “stagflation” market participants are adjusting their expectations, factoring in two potential rate cuts in 2024 and an additional three in 2025. As the first-quarter earnings season winds down, attention shifts to the forthcoming financial disclosures from prominent companies such as Disney and Uber, scheduled for this week.
During this, the market dynamics have been diverse: Small Caps have outshined, continuing their robust performance, while the MAG7 stocks have also seen an upward trajectory. However, the Dow experienced a slight lag in comparison.
The bond market showed mixed results, the dollar remained relatively stable, and Bitcoin experienced a rally before encountering a setback due to regulatory actions involving Robinhood. Meanwhile, oil prices fluctuated significantly, and gold prices built upon the previous week’s gains.
Amidst the market’s positive outlook, a note of caution arises from Warren Buffet’s recent actions. Known for his astute market insights, Buffet has amassed a record-breaking cash reserve of approximately $180 billion, signaling a potential warning to investors.
This raises the question: Is Warren Buffet anticipating a scenario that others on Wall Street are overlooking?
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)
Today, traders continued Friday’s bullish trend, driving major indexes higher. The Nasdaq and gold were the top performers.
Our TTIs also participated in the gains.
This is how we closed 5/06/2024:
Domestic TTI: +7.58% above its M/A (prior close +6.73%)—Buy signal effective 11/21/2023.
International TTI: +8.43% above its M/A (prior close +7.76%)—Buy signal effective 11/21/2023.
All linked charts above are courtesy of Bloomberg via ZeroHedge.
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