Stocks Recover From Early Drop, Investors Eye Inflation Clues

Ulli Market Commentary Contact

[Chart courtesy of MarketWatch.com]

  1. Moving the markets 

U.S. indexes had another rough day on Tuesday, but they managed to recover some of their losses by the end of the session.

Tech stocks, which had soared on Monday, gave back some of their gains as Unity Software announced a massive layoff, Netflix got downgraded by Citi, and Apple and Tesla slipped.

The only bright spot was the MAG7 stocks, which continued their comeback and are close to erasing their losses for the year.

The most shorted stocks had a brief surge but fizzled out in the final hour. Gold had a modest increase, while bond yields held steady after a strong 3-year auction. The dollar rose slightly, and crude oil rebounded above $72 a barrel.

Traders will be watching the inflation data closely later this week, hoping to get some clues on the Fed’s rate cut plans.

Will they get the answers they seek, or will they be left scratching their heads?

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 markets drifted without a clear direction but leaned slightly towards losses. This caused our TTIs to drop a little, but we remain optimistic about equities.

This is how we closed 1/9/2024:

Domestic TTI: +7.43% above its M/A (prior close +7.98%)—Buy signal effective 11/21/2023.

International TTI: +6.47% above its M/A (prior close +7.00%)—Buy signal effective 11/21/2023.

All linked charts above are courtesy of Bloomberg via ZeroHedge.

———————————————————-

WOULD YOU LIKE TO HAVE YOUR INVESTMENTS PROFESSIONALLY MANAGED?

Do you have the time to follow our investment plans yourself? If you are a busy professional who would like to have his portfolio managed using our methodology, please contact me directly to get more details.

—————————————————————-

Contact Ulli

Leave a Reply