- Moving the market
This morning, the Dow and S&P 500 surged into record territory following President Trump’s announcement of his Treasury secretary nominee, Scott Bessent.
Traders reacted positively to the news, cheering the nomination of the hedge fund manager, who recently suggested that any tariffs proposed by Trump should be implemented gradually.
Despite the potential peace deal between Israel and Lebanon, the markets experienced significant volatility.
Crude oil, Bitcoin, and gold all declined, while stocks rallied, led by Small Caps, which benefited from a continued short squeeze. However, the Mega Cap basket slipped again, with one trader humorously describing it as a “source of funds for buying other stuff.”
Lower bond yields provided support for the major indexes, with the 2-year yield plunging significantly. The dollar followed gold lower after its recent relentless rise.
The options market indicated a strong bullish sentiment, with 65% of all options traded being calls, reaching a level of optimism not seen since December 2021.
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 markets opened on a positive note and maintained their early bullish sentiment throughout the session.
However, inflationary components such as crude oil, gold, and Bitcoin faced declines, which was expected given their recent relentless surges, particularly in the cases of gold and Bitcoin.
Meanwhile, our TTIs showed gains and increased their distance from their underlying trend lines, reflecting a strong performance amidst the broader market movements.
This is how we closed 11/25/2024:
Domestic TTI: +10.52% above its M/A (prior close +9.53%)—Buy signal effective 11/21/2023.
International TTI: +4.78% above its M/A (prior close +4.26%)—Buy signal effective 11/21/2023.
All linked charts above are courtesy of Bloomberg via ZeroHedge.
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