- Moving the market
After ending last week on a negative note, the major indexes reversed course this morning, with the Nasdaq leading a broad rally while the Dow lagged.
Despite this positive start, traders remain uncertain about inflation and the potential economic impact of Trump’s newly announced blanket 25% tariff on all steel and aluminum imports, which took effect on Monday. Additionally, previously stated duties on China are set to go into effect today.
This week is packed with significant economic data releases, starting with the January Consumer Price Index (CPI) on Wednesday, followed by preliminary weekly jobless claims and the Producer Price Index (PPI) on Thursday. Federal Reserve Chairman Powell is also scheduled to address Congress tomorrow morning.
Crude oil prices surged over 2%, while the most shorted stocks provided a boost to equities but later retreated from their highs. The mega-cap tech sector continued its volatile trend, with today being an up day.
Bond yields were mixed, the dollar strengthened on Trump’s tariff announcement, and Bitcoin rebounded from the weekend’s weakness.
Gold continued its impressive performance, breaking solidly above $2,900 to reach a new record high and coming within striking distance of the $3,000 mark.
Can this magic level be reached this week?
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)
Following a lackluster week, the major indexes kicked off the day with a strong surge, driven by decidedly bullish sentiment that persisted throughout the session.
Gold, continuing its trend of outperforming equities on a year-to-date basis, shone brightly.
Our TTIs also reaped the benefits of this positive momentum, ending the day on an upward note.
This is how we closed 02/10/2025:
Domestic TTI: +4.03% above its M/A (prior close +3.74%)—Buy signal effective 11/21/2023.
International TTI: +5.34% above its M/A (prior close +4.98%)—Buy signal effective 11/21/2023.
All linked charts above are courtesy of Bloomberg via ZeroHedge.
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