Choppy Markets Expected With Election Approaching; Gold And Bitcoin Soar

Ulli Market Commentary Contact

[Chart courtesy of MarketWatch.com]

  1. Moving the market

As we approach a series of major corporate earnings releases in the coming days, bond yields continued their upward trajectory, reaching their highest levels since July.

Despite this, the major indexes showed little movement early this morning. With only five trading days remaining before the US presidential election, market volatility could increase, potentially leading to more choppiness. Today, the Dow slipped into the red, while the S&P 500 and Nasdaq managed to close in the green.

Bond yields showed significant fluctuations, with the 10-year yield pulling back slightly by the close, yet still rebounding to its July highs.

Gold surged, gaining 1.05% and setting a record, while Bitcoin also reached a new all-time high. The MAG7 stocks closed higher ahead of their earnings reports, whereas the most shorted stocks declined after three consecutive days of gains. The dollar remained unchanged.

The global money supply appears to be supporting Bitcoin’s potential for further gains, as indicated by recent charts.

Could we be on the verge of seeing Bitcoin reach the much-anticipated $100,000 mark?

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 financial markets went through a day of mixed movements, with the Dow dipping into negative territory. In contrast, the S&P 500 and Nasdaq managed to close with slight gains.

However, the most notable developments occurred in the commodities and cryptocurrency sectors, where both gold and Bitcoin surged to record highs.

Despite a slight decline in our TTIs, our overall market outlook remains unchanged.

This is how we closed 10/29/2024:

Domestic TTI: +6.97% above its M/A (prior close +7.30%)—Buy signal effective 11/21/2023.

International TTI: +5.11% above its M/A (prior close +5.38%)—Buy signal effective 11/21/2023.

All linked charts above are courtesy of Bloomberg via ZeroHedge.

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