ETF Tracker StatSheet
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MAJOR INDEXES RECOVER AS BITCOIN NEARS $100K MILESTONE
- Moving the market
The major indexes continued their upward momentum, closing the week with gains and recovering from the previous week’s losses, which had seen the post-election rally lose steam. The markets appear to be stabilizing after absorbing the election aftermath and the much-anticipated Nvidia results, which met but did not exceed expectations.
Earnings reports were mixed: The Gap saw a 7% rise, while Intuit fell by 4%, though neither had a significant impact on the market. Traders are closely watching Bitcoin’s surge as it nears the $100,000 mark, alongside Small Caps, which ended the week with a 3% gain.
According to the latest UMich Sentiment survey, long-term inflation has jumped to its highest level since June 2008, while short-term inflation has dropped to four-year lows. It seems clear to me that inflation will be a persistent issue for the foreseeable future.
The dollar surged to its highest level since September 2022, with Small Caps leading this week’s recovery, supported by a squeeze on the most shorted stocks. The rotation out of tech continued, with Nvidia slipping and the Mega Tech basket erasing most of its post-election gains.
Gold recovered from its recent plunge, posting gains every day this week.
However, the standout performer was Bitcoin, which continued its charge towards $100,000, having gained approximately 45% since just before the election results.
As noted by ZH, if current global liquidity trends continue, Bitcoin could reach $135,000 before encountering significant selling pressure.
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)
In the past week, the major indexes continued their upward trajectory, marking another period of gains.
This positive trend was mirrored by both Gold and Bitcoin, with Bitcoin making notable strides as it approaches the significant $100,000 milestone.
Additionally, our TTIs showed a slight increase, which reinforced our optimistic outlook on the equity markets.
This is how we closed 11/22/2024:
Domestic TTI: +9.53% above its M/A (prior close +9.09%)—Buy signal effective 11/21/2023.
International TTI: +4.26% above its M/A (prior close +3.97%)—Buy signal effective 11/21/2023.
All linked charts above are courtesy of Bloomberg via ZeroHedge.
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