- Moving the market
Geopolitical tensions between Ukraine and Russia initially dragged the markets down, exacerbated by the U.S. administration’s approval for Ukraine to use American weapons to strike inside Russia, raising fears of a potential World War III scenario.
Despite this, the Nasdaq was the first of the three major indexes to recover, buoyed by a 2.4% rise in Nvidia’s stock ahead of its earnings release.
However, the persistent escalation of war rhetoric and uncertainty about the incoming administration’s response could lead to further market volatility.
By the end of the day, the major indexes rebounded, partly due to headlines suggesting that Iran is seeking to de-escalate tensions, which helped stabilize the markets.
On the economic front, Walmart’s stock surged 5% on strong earnings and an improved outlook on discretionary spending. Tesla also added another 2%, bringing its month-to-date rally to 38%, marking its best month since January 2023.
Additionally, the most shorted stocks were squeezed higher, the Mega-Cap Tech basket rebounded, bond yields slipped due to disappointing U.S. macroeconomic data, and gold prices increased.
Bitcoin continued its ascent towards the $100,000 mark, climbing above $94,000 to set a record high before pulling back slightly at the close.
Will $100,000 present a glass ceiling for Bitcoin, or will it break through this milestone?
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 recent geopolitical tensions in Ukraine, marked by saber rattling, created significant volatility in the equity markets.
However, the situation took a positive turn when Iran proposed measures to de-escalate their conflict. This shift in the geopolitical landscape brought a sense of relief to traders, leading to another winning session for both the S&P 500 and the Nasdaq.
Despite this market turbulence, our TTIs saw a slight decline. Nevertheless, this minor dip has not altered our current investment outlook, which remains steady and optimistic.
This is how we closed 11/19/2024:
Domestic TTI: +7.37% above its M/A (prior close +7.66%)—Buy signal effective 11/21/2023.
International TTI: +3.76% above its M/A (prior close +3.90%)—Buy signal effective 11/21/2023.
All linked charts above are courtesy of Bloomberg via ZeroHedge.
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