Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Stocks

New Year Starts With a Bang as Leadership Areas Get Hit

by January 6, 2024
January 6, 2024
New Year Starts With a Bang as Leadership Areas Get Hit

Last week, Growth stocks came under selling pressure, with the Nasdaq falling over 3% amid sharp declines in most of the Magnificent Seven names. These weren’t the only 2023 darlings that pulled back, as Semiconductor and Software stocks also underperformed. In turn, the Technology sector was the worst-performing for the week, with a 4.2% drop.

As you can see in the chart below, the Nasdaq posted a negative RSI on its daily chart last week, which is an event that also occurred 3 times last year, as highlighted. When coupled with a close below its 21-day moving average as marked by the rectangular boxes, further selling took place.

Daily Chart of Nasdaq Composite ($COMPQ)

While it’s unclear how much lower the Nasdaq may go, keeping your eye on interest rates will certainly be key. Similar to those periods of weakness last year, rates are ticking higher, with the yield on the 10-year Treasury now back above 4%. Growth stocks fare poorly in a rising rate environment. You’ll also want to examine the characteristics that marked the early November bottom in the Nasdaq, as this Index went on to regain its uptrend into year-end.

Also notable last week was a pronounced move into Value stocks led by Financials and Healthcare, which both outperformed. Next week, we’ll see clues into the fundamental state of Financials, with notable Bank stocks such as JP Morgan (JPM), Bank of America (BAC) and Wells Fargo (WFC) due to report their 4th quarter results. Management’s guidance regarding growth prospects for this year will be equally important. Each of these companies has a bullish chart heading into their results.

While pullbacks can be painful, during a bull market phase such as now, they allow strong areas of the market to set up for another leg up. Subscribers to my MEM Edge Report were advised to stay with most of the Growth stocks on the report’s suggested holdings list when we issued our Midweek Report on Wednesday. My weekly report on Sunday will provide further insights into the broader markets, as well as industry groups and select stocks. You can use this link here to gain immediate access as well as a 4-week trial, all at a very nominal fee.

Happy New Year!

Mary Ellen McGonagle

0
FacebookTwitterGoogle +Pinterest
previous post
Hot Jobs Data Sends Stock Market Seesawing, Ending Nine-Week Winning Streak
next post
Unlocking Growth: The Importance of Market Pullbacks

You may also like

GNG TV: “All About That Base(ing)” New Go...

July 13, 2023

The Master Sentiment Chart You Need to Follow

October 16, 2024

S&P 500, Dow Jones Hit All-Time Highs Again;...

February 3, 2024

S&P 500 Still Bullish: This Is What You...

June 7, 2024

Stock Market Dips Below 200-Day Moving Average: Are...

March 12, 2025

How to Find the Market’s Strongest Stocks in...

February 4, 2023

Bad News for Buyers Weighing Hefty Mortgage Rates

October 30, 2023

Demystifying Tariff Impact: Essential Insights for Every Investor

April 5, 2025

Week Ahead: NIFTY Stays In A Defined Range;...

February 18, 2024

DP Trading Room: On-Balance Volume (OBV) Explained

April 1, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Elon Musk may speak to Trump aides in push to calm feud

      June 6, 2025
    • Everyone Talks About Leaving a Better Planet for Our Children: Why Don’t We Leave Better Children for Our Planet?

      June 6, 2025
    • MARK HALPERIN: Democrats try to construct a Frankenstein candidate while JD Vance gains momentum for 2028

      June 6, 2025
    • ‘Gone too far’: GOP lawmakers rally around Trump after Musk raises Epstein allegations

      June 6, 2025
    • Democrats begin to embrace Musk amid Trump spat after party railed against him as a ‘dictator’

      June 6, 2025
    • Trump administration defends US and Israeli sovereignty with new sanctions against four ICC judges

      June 5, 2025

    Categories

    • Business (8,149)
    • Investing (2,011)
    • Politics (15,544)
    • Stocks (3,130)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved