- Moving the market
The major indexes began the “post-inauguration” session with a positive outlook, as traders interpreted Trump’s comments on tariffs as less severe than initially anticipated.
Small Caps led the early surge, bolstered by a better-than-expected earnings report from 3M, which saw its stock rise by more than 4%.
Mega-tech companies like Amazon and Alphabet also contributed to the upswing. However, Apple, having faced two downgrades and now down 16% from its record highs, kept the Nasdaq from fully participating in the rally.
On Trump’s first day back in the Oval Office, unfair trade practices were a key focus. He issued a broad memorandum to Federal agencies to study the issue in more detail, easing Wall Street’s fears of an overly aggressive approach.
Gold rallied, reclaiming the $2,750 level, and erasing all post-election losses. Bitcoin, after bouncing off the $100k level, surged back above $107k, just shy of its record high of $109k.
Falling bond yields and a short squeeze provided the necessary momentum for today’s market rise, while the dollar initially bounced but faded by the close.
I couldn’t help but chuckle as oil prices declined throughout the session, with Trump’s famous adage “drill, baby, drill” dampening any bullish sentiment.
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)
As soon as the market opened, bullish sentiment dominated, leading to another strong performance for the major indexes. Initially, the Nasdaq struggled but eventually found support and managed to close in positive territory.
Both of our TTIs ended the day higher, with the domestic TTI showing a particularly impressive gain of over 1%.
This is how we closed 01/21/2025:
Domestic TTI: +5.74% above its M/A (prior close +4.52%)—Buy signal effective 11/21/2023.
International TTI: +3.70% above its M/A (prior close +2.37%)—Buy signal effective 11/21/2023.
All linked charts above are courtesy of Bloomberg via ZeroHedge.
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