- Moving the market
The financial markets showed a mixed performance as major indexes struggled to find direction following two consecutive positive sessions.
Traders carefully evaluated the latest earnings reports, leading to a period of volatility and heightened anxiety. Despite bearish pressure, the S&P 500 and Nasdaq managed to close in positive territory, defying expectations set by the advance/decline ratio.
Concerns over tariffs, which dominated market sentiment earlier in the week, temporarily subsided. This shift in focus was largely attributed to President Trump’s decision to delay duties on Mexican and Canadian goods for 30 days, creating a more optimistic market atmosphere.
In other financial markets, bond yields saw a slight uptick, while gold prices experienced a rare dip. The dollar continued its downward trend for the fourth consecutive day. Oil markets remained under pressure, and Bitcoin extended its decline, falling below the $100,000 threshold.
As we approach the latter half of February, historically known for its weak market performance, traders cautiously monitoring the situation.
While seasonal trends suggest potential challenges ahead, the current positive positioning of our TTIs may provide some reassurance, if they remain on the bullish side of their respective trend lines.
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 S&P 500 wavered above its unchanged line for most of the session, then suddenly dipped below it but recovered to finish with a green close. The Nasdaq followed a similar pattern, but the Dow diverged and ended up with a moderate loss.
Our TTIs were mixed with the domestic one dipping while the international one eked out a gain.
This is how we closed 02/06/2025:
Domestic TTI: +4.49% above its M/A (prior close +4.63%)—Buy signal effective 11/21/2023.
International TTI: +5.82% above its M/A (prior close +5.21%)—Buy signal effective 11/21/2023.
All linked charts above are courtesy of Bloomberg via ZeroHedge.
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