- Moving the market
The markets saw a slight uptick after the opening bell as traders navigated a flood of earnings reports from several mega-cap companies.
The overall outcome was positive for the major indexes, with Meta gaining 1.6% and Tesla rising 2.9%. However, Microsoft fell over 6% due to a disappointing revenue forecast. Notably, Tesla managed to shrug off both an earnings and revenue miss.
Looking ahead, Apple is set to report its earnings after the close today, while Amazon’s report is scheduled for next week. Nvidia also weighed on the market early, initially slipping nearly 4% before recovering to close 1% higher.
In economic news, fourth-quarter GDP growth was reported at 2.3%, falling short of the expected 2.6%. Additionally, pending home sales plunged 5.5% month-over-month in December, as high mortgage rates continued to reduce affordability.
Following Monday’s DeepSeek carnage, the most shorted stocks reversed direction, rallied, and provided support to equities in general. Bond yields experienced significant volatility but ended the day nearly unchanged.
Bitcoin continued its relentless climb towards all-time highs, rallying to $106,000 and erasing all of Monday’s losses.
Oil prices spiked on news of tariffs announced by Trump, while gold surged to a new record high, closing just shy of $2,800. A further 7% rise would push gold to the coveted $3,000 level.
Will gold reach this milestone in the first half of 2025 or the second?
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 early part of the session, the S&P 500 and Nasdaq fluctuated around their respective unchanged lines. However, as the day progressed, bullish sentiment took hold, propelling both indexes to a positive close.
The S&P 500 led the charge, while the Nasdaq lagged, primarily due to ongoing struggles in the tech sector.
Despite the market’s volatility, our TTIs remained robust, achieving solid gains by day’s end.
This is how we closed 01/30/2025:
Domestic TTI: +5.75% above its M/A (prior close +4.64%)—Buy signal effective 11/21/2023.
International TTI: +5.53% above its M/A (prior close +4.82%)—Buy signal effective 11/21/2023.
All linked charts above are courtesy of Bloomberg via ZeroHedge.
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