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

Rules-Based Money Management – Part 8: Putting Trend-Following...

June 6, 2024

This Is How I Crush The Benchmark S&P...

February 15, 2025

Many Stocks In This Industry Have Popped After...

March 4, 2023

The Big Divergence in Bullish Percents

December 18, 2024

Analyze This: Will the Dow Will Soar or...

June 20, 2024

MEM TV: Best Way To Participate in Stronger...

February 10, 2024

Copper Stocks Have Lots Of Volatility

August 4, 2023

200-Day Moving Average Confirms Bearish Phase

April 17, 2025

The Most Important Stat That No One Is...

October 30, 2022

Three Things I WISH I’d Known About Trading

February 7, 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

    • Trump wins over lifelong Democrat autoworker with ‘big, beautiful bill’ vehicle loan tax benefit

      June 27, 2025
    • EXCLUSIVE: Trump admin takes action after massive fraud uncovered at agency Dems tried to protect from DOGE

      June 26, 2025
    • FBI investigating Iran strike leaker, Leavitt says: ‘They should be held accountable’

      June 26, 2025
    • SMCI Stock Surges: How to Invest Wisely Now

      June 26, 2025
    • NEW! 5 Significant Additions to Our Professionally-Curated Market Summary Dashboard

      June 26, 2025
    • ‘Presidential incapacity’: Senate Republican seeks paper trail of Biden’s autopen use

      June 26, 2025

    Categories

    • Business (8,316)
    • Investing (2,074)
    • Politics (15,824)
    • Stocks (3,172)
    • 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