- Moving the market
Bullish sentiment persisted today, with the S&P 500 reaching a new all-time high, driven by strong performance in the tech sector. The Nasdaq led the way, while Small Caps lagged and ended the session in the red.
Oracle (+6%) and Nvidia (+4%) saw significant gains, fueled by optimism surrounding AI and the announcement of a $500 billion AI infrastructure investment by Stargate, which boosted the entire mega-tech sector. Even the announcement of a 10% tariff on China starting February 1 by President Trump couldn’t dampen the market’s enthusiasm.
Netflix (+10%) and Procter & Gamble also advanced, thanks to strong quarterly earnings reports. Traders appear to be in sync with the recent market-friendly executive orders from the new administration, particularly those focused on deregulation and energy.
Today’s market rally occurred despite rising bond yields, which helped the dollar recover from yesterday’s sell-off. Gold remained unaffected by these movements, climbing towards its all-time highs, and decoupling from its usual correlation with the dollar.
Bitcoin, meanwhile, seemed to be consolidating after yesterday’s bounce, drifting moderately lower. This could potentially set the stage for its next leap into record territory.
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 major indexes maintained their momentum from the previous day, with the S&P 500 closing at a new record high. Leading the charge was the Nasdaq, which outperformed other indexes. However, Small Caps did not share in the gains and ended the session in negative territory.
Our TTIs showed mixed results; the international TTI remained unchanged, while the domestic TTI saw a moderate decline.
This is how we closed 01/22/2025:
Domestic TTI: +5.36% above its M/A (prior close +5.74%)—Buy signal effective 11/21/2023.
International TTI: +3.70% above its M/A (prior close +3.70%)—Buy signal effective 11/21/2023.
All linked charts above are courtesy of Bloomberg via ZeroHedge.
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