- Moving the market
After yesterday’s record session for the S&P 500, the major indexes pulled back moderately due to concerns about persistent inflation and proposed trade tariffs by Trump. He suggested imposing duties of up to 25% on imported autos, chips, and pharmaceuticals.
Among the S&P 500 sectors, Materials were the worst performers, losing around 1%, while Energy defied the trend with a 1.4% gain as today’s session began.
Despite the negative sentiment surrounding inflation and bond yields, the market’s resilience since Trump took office a month ago has been impressive.
Equities managed to recover and close in positive territory once again, spurred by the latest Fed Minutes hinting at a possible taper or pause in the Fed’s tightening program.
Falling bond yields, weak housing starts, and lower trending macro data also contributed to the market’s recovery. The dollar rallied for the second consecutive day, gold remained relatively unchanged, and oil prices fluctuated but ended with a small gain.
Bitcoin rebounded from yesterday’s decline, approaching the $97k level. Will it finally be able to conquer the $100k resistance again?
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 seen in recent sessions, the major indexes initially dipped but gained momentum later in the day, closing in positive territory.
Our TTIs showed mixed results, with the domestic index rising while the international index declined slightly.
This is how we closed 02/19/2025:
Domestic TTI: +5.01% above its M/A (prior close +4.80%)—Buy signal effective 11/21/2023.
International TTI: +7.86% above its M/A (prior close +8.27%)—Buy signal effective 11/21/2023.
All linked charts above are courtesy of Bloomberg via ZeroHedge.
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