- Moving the market
The major indexes maintained yesterday’s upward momentum as we entered today’s session, buoyed by the anticipation of earnings reports from larger companies. However, by the end of the day, the bears prevailed, causing a slight dip into the red.
Upcoming earnings reports from tech giants like Alphabet and Tesla are highly anticipated, offering traders an early glimpse into the sector’s second-quarter performance. Currently, the focus is on earnings season, with traders scrutinizing numerous reports from both the US and Europe.
General Motors exceeded expectations with its results, yet its shares fell by 4%. Conversely, UPS missed both top and bottom-line estimates, resulting in a 12% drop in its stock. Despite these mixed outcomes, 80% of the S&P 500 companies that have reported so far have surpassed expectations.
On the economic front, it was a challenging day. Existing home sales in June were worse than expected and have not increased year-over-year since July 2021. Additionally, the Federal Reserve surveys plummeted to near four-year lows in July, further dragging down the Economic Surprise Index.
The MAG7 stocks remained stagnant, bond yields were mixed, and Bitcoin relinquished some of its recent gains. Gold managed to achieve modest gains, breaking back above $2,400, while crude oil fell below the $80 mark.
Traders are clearly focused on the upcoming major earnings announcements, which could spark bullish sentiment if the results exceed expectations.
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 market experienced an initial surge, but this early rally encountered resistance and subsequently reversed direction and caused the major indexes to dip into negative territory. Similarly, our TTIs mirrored this trend.
Ultimately, the day’s movements resulted in minimal overall gains or losses.
This is how we closed 07/23/2024:
Domestic TTI: +6.85% above its M/A (prior close +7.23%)—Buy signal effective 11/21/2023.
International TTI: +7.02% above its M/A (prior close +7.10%)—Buy signal effective 11/21/2023.
All linked charts above are courtesy of Bloomberg via ZeroHedge.
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