- Moving the market
With a busy week of earnings ahead, the major indexes began the session on a positive note.
However, after much fluctuation, they ended nearly unchanged. The tech sector is poised for significant movement as industry giants like Microsoft, Meta, Amazon, and Apple are set to report their earnings in the coming days.
Additionally, the Federal Reserve is scheduled to announce its latest policy statement on Wednesday. Although an interest rate cut is not anticipated, traders will be closely analyzing the Fed’s language for any hints of dovish changes that might occur during their September meeting.
Last week was marked by volatility in the markets, with major indexes showing divergence: the S&P 500 and Nasdaq declined, while the Dow and Small Caps saw gains. The tech sector’s cooling off contributed to the S&P 500 and Nasdaq’s drop.
Small Caps fell today as the short squeeze lost momentum, bond yields remained stagnant, and expectations for rate cuts in 2025 increased. The dollar strengthened, gold prices remained steady, and crude oil prices retreated to two-month lows. Bitcoin’s value dropped from $70k to $67k after the administration decided to transfer $2 billion from its stockpile.
It seems that traders and markets were on edge today, anticipating the Fed meeting and major earnings releases later this week. These upcoming events will certainly impact market sentiment.
But in which direction?
Continue reading…
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)
Despite several early attempts to rally, the major indexes ultimately closed the session with minimal change, hovering just around the unchanged line.
Similarly, our TTIs showed little direction throughout the day, though they did manage to close slightly higher.
This is how we closed 07/29/2024:
Domestic TTI: +6.74% above its M/A (prior close +6.59%)—Buy signal effective 11/21/2023.
International TTI: +5.82% above its M/A (prior close +5.80%)—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