- Moving the market
Markets often demand perfection, and this was evident in Nvidia’s performance. Despite posting better-than-expected third-quarter results and issuing strong guidance, Nvidia’s stock initially dipped moderately before surging higher.
Some analysts expressed concerns over slowing revenue growth, suggesting that the most optimistic estimates in Nvidia’s forecast were not exceeded, leading to the initial pullback. It remains to be seen whether bargain hunters will step in or if growth and momentum investors will exit the stock.
Overall, market sentiment remains positive, bolstered by Bitcoin crossing the $98,000-mark last night and briefly touching $99,000 today. Traders are hopeful that the new administration will introduce more supportive regulations for the crypto industry.
Economic data presented a mixed but generally negative picture. Initial jobless claims fell to 213,000 from last week’s 219,000, but continuing claims rose to 1.908 million from 1.872 million. The manufacturing index also slowed significantly, dropping to -5.5 in November from October’s +10.3, indicating growing economic weakness.
The Dow and S&P 500 achieved solid gains, driven by a significant short squeeze, while the Nasdaq lagged and barely stayed in positive territory as major tech stocks, including Google, took a hit.
Bond yields edged higher, yet utilities surged, with XLU adding 1.75%. Crude oil recovered its $70 level, and the dollar rallied to near recent highs.
Gold had a strong day, crossing its 50-day moving average and marking its fourth consecutive day of gains after six straight days of losses.
Bitcoin’s momentum accelerated sharply following the announcement of Gensler’s retirement, briefly touching $99,000 before pulling back.
Will we see Bitcoin reach the magical $100,000 mark by this weekend?
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 beginning the session with an uncertain outlook, both the Dow and the S&P 500 managed to gather some upward momentum, ultimately achieving solid gains by the end of the day.
In contrast, the Nasdaq struggled to find its footing, barely breaking even despite a moderate advance from Nvidia.
Our TTIs reinforced our bullish outlook, closing the day on a high note.
This is how we closed 11/21/2024:
Domestic TTI: +9.09% above its M/A (prior close +7.73%)—Buy signal effective 11/21/2023.
International TTI: +3.97% above its M/A (prior close +3.50%)—Buy signal effective 11/21/2023.
All linked charts above are courtesy of Bloomberg via ZeroHedge.
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