If you choose to no longer receive our free newsletter and daily market updates, click here to UNSUBSCRIBE
|
It seems the throne of Big Tech is shaking as small-cap stocks are making a play for power. Could this be the dawn of a new era? Today, we'll examine this potential stock market revolution and the crucial signs that could herald a lasting shift.
But hold onto your seats, there's more! In our Chart of the Day, we'll dissect the intriguing tale of two sectors – the semiconductor industry's stumble and the surprising ascent of bank stocks. Are we witnessing a changing of the guard?
And that's not all! We'll uncover the latest Market Moving News that could shake up your portfolio, and sprinkle in some intriguing tidbits in our Random Musings and Time Machine section. |
|
|
Unlock Elite Market Insights + 2 Free Gifts Today!
|
Join the Equity News Report now and get 52 weekly issues free! Plus, receive a free copy of the Smart Investor's Guide and a special report on a $5.7B kidney disease market opportunity. Don't miss out—subscribe today and transform your investment game!
Tap here to instantly subscribe and start learning this important information now!
By tapping the link above to agree to the Equity News Report Privacy Policy. You will receive your special report sent to your email and ongoing newsletters from Equity News Report |
|
|
A Broadening Rally and Powell's Patience |
Political Shake-Up and Market Shifts Wall Street started the week on a high note after a weekend of political upheaval. President Joe Biden's decision to step down from the 2024 presidential campaign and endorse Vice President Kamala Harris sent ripples through the market. Investors, grappling with uncertainty, leaned into the familiar territory of mega caps, giving tech stocks a significant boost. With the Democratic party quickly rallying around Harris, the market responded with a surge in large tech stocks, a sector that has consistently performed well amid uncertainty. While initial excitement might taper off, the presidential race promises more surprises ahead.
Earnings season is in full swing, with 20% of S&P 500 companies reporting this week. Last week's results were promising, with 80% of companies surpassing earnings expectations. Notably, Alphabet (GOOGL) and Tesla (TSLA) are set to report tomorrow, adding to the market's anticipation. Here's how the major indices fared: S&P 500® index (SPX) rose 59.41 points (1.1%) to 5,564.41 Dow Jones Industrial Average® ($DJI) climbed 127.91 points (0.3%) to 40,415.44 Nasdaq Composite® ($COMP) jumped 280.63 points (1.6%) to 18,007.57 The 10-year Treasury note yield edged up to 4.26%, and the Cboe Volatility Index (VIX) dropped sharply to 14.91, indicating reduced market volatility.
Semiconductors led the charge, with the PHLX Semiconductor Index (SOX) rising nearly 4%, driven by strong rebounds from Nvidia (NVDA) and ASML (ASML). The rally extended beyond tech, with all but two S&P 500 sectors closing in the green.
Treasury yields continued their upward trend, partly influenced by political dynamics. Both U.S. parties' emphasis on tariffs could complicate the Federal Reserve's inflation battle, although September rate cut odds remain high.
This week, watch for Alphabet's focus on internet advertising and cloud growth, Tesla's recent delivery figures, Visa's insights on delinquencies, and Ford's consumer demand indicators. These reports will provide crucial insights and strategies for navigating the market's twists and turns. |
|
|
A way to target $500 each week? |
Household expenses average $5,000 monthly, but income falls short at $4,340. This gap affects many. Discover how you could target an extra $500 or more each week.
Watch a "2-Step Trade" Live Join me as I show a simple, step-by-step method live. No risky options or slow-growth strategies.
Start Today See it in action before deciding. Watch the live trade now!
By clicking the link above you agree to periodic updates from Jack Carter Trading and its partners (privacy policy) |
|
|
When Life Gives You Biden, Make Mega-Cap Lemonade? |
It seems like Wall Street had a case of the Mondays, but with a twist! Just when we thought tech stocks were down for the count, Biden throws in the towel and investors pivot back to the familiar embrace of mega-caps. It's like your ex suddenly looking attractive again when a new crush ghosts you.
So, what's the takeaway? Maybe it's that even in the face of political surprises, investors ultimately seek comfort in what they know. Or perhaps it's a reminder that the market, like life, can be full of unexpected turns. Either way, it's a good lesson to keep your portfolio diversified, just in case your market crush decides to play hard to get. |
|
|
Chips Crumble, Banks Blossom – Is the Tech Reign Over? |
The stock market is a fickle beast, and the second half of 2024 seems to be whispering a new tale. The Philadelphia Semiconductor Index (SOX) is flashing warning signs that would make even the most optimistic tech enthusiast sweat. A false breakout, a gap down, bearish divergence, and a cross below the 21-day EMA? It's not a good look for chip stocks.
Could this be the end of the tech dominance we've grown accustomed to? While the SOX chart paints a rather gloomy picture, there's a glimmer of hope elsewhere. The KWB Banking Index, in stark contrast, is hinting at a potential breakout. Are banks the new darlings of the market? It's too early to definitively crown new kings, but these charts are certainly telling a compelling story. The once-mighty chip stocks seem to be losing their sizzle, while the steady-Eddie banks are showing signs of renewed vigor.
So, Trendsters, keep a close eye on these sectors as they play out this captivating market drama. Remember, fortunes can be made and lost in the blink of an eye, and the key to success is staying ahead of the curve. |
|
|
This obscure formula holds the key to 64 wins in a row |
This computer whiz has been able to average an annual return of 234%. Which is about 23X what you expect the S&P 500 to return during a good year!
Granted, he can never promise future returns or against losses, but, if you want to get in on the 65th trade and see how this “Income Glitch” works…
Go ahead and click the link HERE to check out the FREE Income Glitch Workshop. But don’t wait too long because the next trade could drop as soon as tomorrow!
Disclaimer: Since its inception, the win rate is 100% over 64 trade alerts. The average hold time is around 14 days, and the average win is between 5-7%. Past performance does not guarantee future results. Annualized the return on options is 234.32% per year without compounding.
By clicking the link above you agree to periodic updates from ProsperityPub and its partners (privacy policy) |
|
|
The Throne is Up for Grabs: Is Big Tech's Reign Over? |
While mega-cap stocks staged a comeback on Monday, whispers of a broader market rotation are growing louder. Could the recent surge in small-cap stocks be the first sign of a power shift away from Big Tech?
BofA strategists believe the answer lies in two key indicators: a 10-year Treasury yield below 4% and an ISM manufacturing PMI above 50%. Historically, when these conditions are met, the equal-weighted S&P 500 has consistently outperformed its market-cap-weighted counterpart. Why a Rotation Matters Manufacturing Rebound: A manufacturing recovery could draw investors towards industrial and cyclical stocks, away from tech's dominance.
Yield Sensitivity: Lower Treasury yields often favor value stocks, which are typically less sensitive to interest rate fluctuations than growth-oriented tech companies. The Current Landscape
Despite the recent rise in yields due to political uncertainty, the market is still pricing in a Fed rate cut in September. However, a sustained decline in yields below 4% would be a stronger signal for a rotation. Tech's Balancing Act
The tech sector is currently in a precarious position. While mega-caps rebounded on Monday, the recent weakness in chip stocks (as highlighted in our Chart of the Day) suggests potential vulnerability. What This Means for You
The potential for a market rotation adds another layer of complexity to the already dynamic landscape. Stay vigilant and consider diversifying your portfolio to capture opportunities across different sectors. As always, monitor key economic indicators and earnings reports for clues about the market's next move. |
|
|
China's Rate Surprise, Earnings Spotlight, and U.S. Data on Deck |
Stock Highlights: Mattel (MAT) surged 15% on rumors of a potential acquisition by L Catterton.
Nvidia (NVDA) bounced back with a 5% gain, possibly fueled by reports of developing AI chips for China and positive analyst sentiment. CrowdStrike (CRWD) continued its downward spiral, shedding 13%, following a major IT outage. Delta (DAL) dipped 3.5% as it struggled to recover from the CrowdStrike-related outage.
Verizon (VZ) plummeted 6% due to a revenue miss despite solid subscriber growth. China's Unexpected Move:
The People's Bank of China surprised the market by cutting interest rates, signaling its commitment to boosting economic growth. This move, coupled with weaker-than-expected economic data, highlights the challenges facing China's economy and could impact global markets. Eyes on U.S. Data and Earnings: Key U.S. economic data on housing and inflation will be released this week, potentially providing further insights into the economy's trajectory and influencing the Federal Reserve's monetary policy decisions. Additionally, investors will be closely watching earnings reports from tech giants Alphabet and Tesla, as well as Visa and Ford, for clues on consumer spending and credit trends. Inflation Watch and Rate Cut Odds: The upcoming PCE inflation report, the Fed's preferred gauge of inflation, is expected to show a continued disinflationary trend, further solidifying expectations of a rate cut at the September FOMC meeting. However, investors remain vigilant as any unexpected data could alter these expectations.
|
|
|
MARKET MUSINGS & TIME CAPSULE |
Random Musings
The Market's Mood Swing: From tech gloom to mega-cap boom in a matter of days – the market's emotions are as unpredictable as a reality TV finale. China's Rate Cut Conundrum: Is it a sign of desperation or a strategic move to bolster growth? Only time (and data) will tell. Chip Dip or Death Spiral? The semiconductor sector's stumble raises questions about the longevity of the tech rally. Are the bears finally having their day?
Political Plot Twists: Biden's exit and Harris's ascent add a new layer of uncertainty to an already volatile market. It's like a political thriller we can't stop watching.
Inflation Intrigue: Will the PCE report deliver the knockout punch to inflation, or will it throw a curveball at the Fed's plans? Stay tuned for the next episode! On this day in history, July 23
July 23, 1983: The Dow Jones Industrial Average closed above 1,200 for the first time, marking a milestone in the bull market of the 1980s. (Will we see a similar surge in 2024?)
July 23, 1999: The Nasdaq Composite hit an all-time high during the dot-com boom, fueled by investor exuberance for tech stocks. (Are we witnessing a similar bubble today?)
July 23, 2008: Oil prices soared to a record high of $147 per barrel, contributing to economic woes and ultimately the Great Recession. (Could rising inflation trigger similar challenges now?)
July 23, 2012: Facebook (now Meta) went public, marking one of the largest IPOs in history. (Will the tech giants of today continue to dominate?) July 23, 2019: The U.S. and China engaged in a trade war, with both sides imposing tariffs on each other's goods. (Could political tensions once again disrupt global markets?) |
|
|
As the stock market continues to surprise and challenge us, it's worth remembering the words of Jesse Livermore, a legendary trader from a bygone era: "There is nothing new in Wall Street. There can't be because speculation is as old as the hills. Whatever happens in the stock market today has happened before and will happen again." The recent developments – from political shakeups to tech tumbles and bank booms – are just the latest chapters in the ongoing saga of the market. As Trendsters, we must remain adaptable, informed, and ever-ready to pivot as the winds of change blow.
So, keep your eyes peeled for the signals, your wits sharp, and your portfolios diversified. The market may be unpredictable, but with a bit of wisdom and a dash of humor, we can navigate its twists and turns with confidence and even a little bit of fun. Until next time, happy trading! |
|
|
Disclaimer: Trading foreign exchange, stocks, options, or futures on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade, you should carefully consider your objectives, financial situation, needs and level of experience.
This newsletter provides general information that does not take into account your objectives, financial situation or needs. The content of this newsletter or our website must not be construed as personal advice. COE Media is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation.
The possibility exists that you could sustain a loss in excess of your deposited funds and therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin. You should seek advice from an independent financial advisor.
Any past performance presented is not necessarily indicative of future success.
Always do your own research and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.
Advertising Disclosure: This email contains paid advertisements and we have been paid in some fashion to send this advertisment to our readers.
If you do not wish to receive this email, then we apologize for the inconvenience. You can immediately discontinue receiving this email by clicking on the unsubscribe link and you will no longer receive this email. If you have any questions, please send an email with your questions to [email protected]
We strongly urge you to read our full disclaimer here.
UNSUBSCRIBE This publication is part of the 412 Media Network.
TradersOnTrend.com is copyright (© 2024) of 412 Media Network. All Rights Reserved
United States Post Office. P.O. Box 184 500 Venetia Rd. Pennsylvania 15367-9998 |
|
|
|
