- Moving the market
The S&P 500 and Nasdaq edged higher into record territory, while the Dow lagged after previously touching the 45,000 milestone.
Intel, AI server maker Super Micro, and Tesla all saw significant gains, propelling the Nasdaq to lead today’s rally. November was the best month of the year for both the Dow and the S&P 500, with gains of 7.5% and 5.7%, respectively.
Small Caps, despite a significant pullback in July, benefited from potential tax cuts proposed by Trump and surged more than 10% in November. However, Bitcoin, through the ARKB ETF that we own, outperformed all with a 38% gain for the month.
Because of its volatility, Bitcoin pulled back today, bouncing off the $95,000 level as it continues to pursue the $100,000 milestone.
With the Nasdaq in rally mode, it’s no surprise that the Mega Cap tech stocks advanced as well. Bond yields were mixed, with the 2-year yield tumbling after an early surge. The dollar recovered from its recent slide, while crude oil dropped but managed to defend its $68 level.
While retail investors are thrilled with the performance of the indexes, caution is advised as insiders are selling into this rally:
It’s crucial to have an exit strategy in place, as we appear to be in a blow-off phase.
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)
Although the major indexes started the day in negative territory, both the S&P 500 and Nasdaq managed to recover and close in positive territory.
Meanwhile, our TTIs had a mixed performance. The Domestic TTI experienced a slight decline, whereas the International TTI posted a modest gain.
This is how we closed 12/02/2024:
Domestic TTI: +10.05% above its M/A (prior close +10.33%)—Buy signal effective 11/21/2023.
International TTI: +4.98% above its M/A (prior close +4.94%)—Buy signal effective 11/21/2023.
All linked charts above are courtesy of Bloomberg via ZeroHedge.
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