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December 12, 2023

 

Stocks are roaring like a 1920s flapper after a bathtub gin bender! Macy's is hotter than a Charleston contest, and the bulls are stampeding towards a 30% gain over the next two years.

 

But before you do the Charleston on your portfolio, remember: even flappers had bad hangovers. Keep an eye on inflation and the Fed, because their decisions could turn this party into a silent movie real quick.

 

Stay tuned for the "Chart of the Day," where we'll dissect a diamond pattern that could leave you feeling like Gatsby at a Gatsby party (rich, confused, and possibly in a pool).

And don't miss "Market Moving News" – it's got more twists and turns than a flapper's dress. So buckle up, buttercup, and get ready for a wild ride on Traders on Trend!

 

Remember, today's insights are brought to you by the brilliant mind and tactics by Charles Payne. Let's dive into what makes the markets tick and why your portfolio might just be ready for a joyride! 📈✨
 

Today's Market Mood: EXTREMELY BULLISH!

The Bear-Bull Meter
 

Daily Market Roundup and Strategy
 

Welcome to today's Daily Market Roundup where the numbers don’t lie, but they do like to mess with investors' expectations! The market's mood is as optimistic as a kid in a candy store, with major indexes reaching their highest levels since the early days of 2022. It seems investors are playing a game of 'wait and see' ahead of some juicy economic updates.

 

First up, let's talk stocks: The S&P 500 and the Nasdaq Composite closed to 21-month highs. It's not just the CPI and the Fed's policy meeting causing the buzz. Retailers are strutting their stuff on the market, with Macy’s shares leaping a stunning 20% after a buyout offer that turned heads. Meanwhile, the Federal Open Market Committee (FOMC) meeting looms like a nail-biting season finale, with all eyes on Fed chair Jerome Powell. Will the next episode feature rate hikes or a steady-as-she-goes approach? The plot thickens!

 

For now, we offer this advice: Keep those rate-cut party hats in the closet for now. The economy's resilience might lead the Fed to play it cool, avoiding any hasty moves that could rekindle inflation's wrath.

 

Let's crunch those numbers:

 

S&P 500: Up 0.4% at 4,622.44.

Dow Jones: A healthy 0.4% rise to 36,404.93.

Nasdaq: Gained 0.2%, ending at 14,432.49.

Treasury yield: A calm 4.239%.

VIX: A slight uptick to 12.63.

 

In the tech corner, semiconductor shares, including Broadcom, are flexing their muscles. And let’s not forget transport companies, cruising along nicely. Over in commodity land, Natural Gas futures took a tumble, thanks to Mother Nature's warmer hug and a supply surplus.

 

Strategy Corner: With the market displaying a mix of cautious optimism and sector-specific rallies, it's a good time for investors to balance their portfolios. Considering the potential for a steadier rate environment, it might be wise to keep an eye on sectors showing resilience, like tech and retail. However, don't forget the age-old wisdom of diversification. As we await Powell's words, remember: in the stock market, it's not just about the destination, but also the journey. Now, let's see where this market takes us!

 

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Market Mischief
 
Grandma, the "Accidental Doge Queen," throws a lavish yacht party fueled by her Shiba Inu-themed fortune. Hedge fund managers, drowning their sorrows in overpriced champagne, beg for her investment secrets. Grandma, sipping her Mai Tai, simply replies, "Woof."
 

Chart of the Day

$GOOG: This Diamond is not Forever 💥💎
 

Forget diamond hands, GOOG's trapped in a diamond box, a rare symmetrical triangle confining it for months. This ain't no ordinary triangle, it's a pressure cooker waiting to explode. Three days ago, it tried to escape with a volume surge, but the trendline, a bouncer with biceps of steel, promptly shoved it back in.

 

So, what's next? Breakout bingo! 55% chance of a breakdown, 45% chance of a moonwalk to the upside. My crystal ball's cloudy, but one thing's clear: this breakout will be a doozy, sending GOOG skyrocketing or plummeting like a rogue rocket.

 

Long or short, this is a golden opportunity. Just remember, diamonds are forever, but profits are fleeting. So, strap in, grab your pickaxe, and get ready to mine this beauty for all it's worth. Just keep an eye on that trendline – it might be the canary in the coal mine, singing your next move.
 

The Roaring 2020s Scenario: How Stocks Could Rise 30% by 2025
 

Today, we're weaving through a narrative that's as optimistic as a kite on a breezy day. Our research team has crunched the numbers and their crystal balls are showing a glittering future: stocks might just soar a stellar 30% by 2025. Think of it as the market's response to a world where technology is sprinting faster than a caffeinated cheetah, inflation is bowing out, and interest rates are playing it cool.


The scene's set for a Santa Claus rally that could keep on giving, extending its jolly ride far beyond the festive season. If history has taught us anything, it's that the S&P 500 loves to surprise us, with an average annual return of 10% since its inception. But this isn't just any year, and the market isn't playing by the old rules.


Let's talk tech: AI advancements, like the launch of OpenAI's ChatGPT, are poised to rev the engines of productivity and prosperity, potentially kickstarting what we're cheekily calling the 'Roaring 2020s.' We're not just witnessing a technological revolution; we're at the cusp of a seismic shift in how economies might scale new heights with robotics, gene-editing, and quantum computing.


So, as Powell preps to possibly paint a dovish hue at the FOMC meeting, and inflation appears to take a backseat, it's not just the chill in the air that's making things interesting. The market's got its gaze firmly on the horizon, and it could be a horizon lined with opportunities for the bold.
 

Market Moving News
 

Best Buy (BBY) experienced a 1.6% lift after Jefferies elevated its stock status from "hold" to "buy," forecasting a brighter sales outlook. Broadcom received a bullish endorsement from Citi, citing the strategic acquisition of VMware as a growth catalyst, prompting a rally.

 

Cigna Group (CI) surged by 17% upon abandoning its acquisition bid for Humana (HUM) due to pricing stalemates, concurrently announcing a substantial expansion of its share repurchase program, which inversely nudged Humana shares down by 1%.

 

Nike (NKE) enjoyed a 2.3% ascent after an upgrade from Citi shifted the rating to "buy," whereas Occidental Petroleum (OXY) reversed initial losses, ending nearly 1% higher following its acquisition announcement of CrownRock and a dividend increase.

 

Pinterest (PINS) saw shares increase by 1.7% after RBC upgraded the stock to "outperform," expressing optimism for the online advertising sector. Snap (SNAP) also rose 4.5% post an upgrade from Wells Fargo to "overweight."

 

The earnings calendar is headlined by technology leaders Oracle (ORCL) and Adobe (ADBE), with investors keenly awaiting their quarterly disclosures. The performance of these stocks reflects a robust tech sector trend.

 

Retail giant Costco (COST) and homebuilder Lennar Corp. (LEN) are also slated to report, potentially shedding light on consumer spending and the housing market's health.

 

The market is cautiously eyeing the upcoming CPI and PPI data, with expectations set for a continuation of the inflationary downtrend. Nonetheless, any surprises could lead to a swift reassessment of the 2024 interest rate landscape, especially in the wake of a strong November jobs report.

 

Treasury yields have seen a significant drop since late October, but market participants remain vigilant for potential volatility in response to the Fed's upcoming decisions and economic data releases. The consensus via the CME FedWatch Tool indicates the FOMC is expected to maintain the current federal funds rate, with investor sentiment suggesting a slight pushback in the timing of anticipated rate cuts for 2024.
 

Random Musings and the Time Machine
 

Did you know?

 

  • Don't be fooled by the ticker symbols! "BRK.A" might sound like a breakfast cereal, but it's actually the priciest stock in the world, belonging to Warren Buffett's Berkshire Hathaway! 🤯
  • Pizza and profits? Domino's Pizza's IPO in 1995 was only $14 per share. Today? It's a sizzling $420! That's one delicious long-term investment. 🍕💰
  • The market loves holidays (sometimes)! On average, November and December are the best months for stock returns. But watch out for September, historically the worst! 🗓️📈📉
  • Warren Buffett's secret weapon? He isn't just lucky! He reads an insane amount, reportedly 500 pages a day. Knowledge is power, even in the stock market. 📚🧠
  • Investing doesn't have to be boring! There are companies that make socks with famous investors' faces on them, board games about stock trading, and even themed cocktails! Embrace the fun side. 🎲🧦🍹
  • Time is money, literally! The longer you invest, the more your money can grow thanks to the magic of compounding. Even small contributions can turn into something big over time. ⏳💰

 

On this day in history, December 12:

 

  • 1915: A medical marvel unfolds in Buenos Aires. Dr. Luis Agote, a pioneering physician, performs the first successful blood transfusion for hemophilia, defying the odds and paving the way for countless lives saved in the future. This courageous act marks a turning point in treating this once-debilitating condition.
  • 1941: The rumble of war drums echoes across the Pacific. Japan launches a surprise attack on Thailand, shattering the fragile peace and plunging the region into the tumultuous Pacific War. This pivotal event, fueled by territorial ambitions and simmering tensions, would reshape the geopolitical landscape for years to come.
  • 1979: A cosmic ballet graces the night sky as Voyager 1, a fearless space explorer, embarks on a close encounter with Jupiter. The colossal planet, cloaked in swirling storms and vibrant moons, reveals its secrets through stunning images captured by the probe. This groundbreaking mission expands our understanding of the solar system's majesty.
  • 1998: Humanity's collective dream takes flight as the first module of the International Space Station, Zarya, ascends into the heavens. This symbol of international collaboration marks the beginning of a monumental endeavor, building a permanent home amongst the stars and pushing the boundaries of human exploration.
  • 2015: A chorus of hope rises from Paris as nearly 200 nations join hands to tackle the pressing challenge of climate change. The Paris Agreement, forged in the crucible of global concern, sets ambitious goals for curbing greenhouse gas emissions and safeguarding our planet for future generations. This historic moment marks a pivotal shift towards a sustainable future for all.

 
 

The Final Ledger
 
As we close the book on today's market madness (or maybe it was just market meow-ness?), let's leave you with something to giggle about and a gem of financial wisdom: "Investing is basically admiring someone's used car and assuming they're crushing it on Wall Street."
 
Hopefully, our insights today have helped you polish your financial telescope and see the market's shimmering possibilities with a bit more clarity. Keep your portfolio's engine purring like a kitten, and may your financial journey be filled with the sweet surprise of bonus dividends, just like finding an extra chocolate in an empty box.
 
Until next time, keep investing smart with a dash of market mischief!