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

Future Retirement Success

Stocks

A Strong Week: Stocks, Gold, and Crypto’s Robust Performance

by October 18, 2024
October 18, 2024
A Strong Week: Stocks, Gold, and Crypto’s Robust Performance

Despite a light economic data week, the stock market continued its rally, with the S&P 500 ($SPX) and the Dow Jones Industrial Average ($INDU) closing at record highs. How many times have we heard that? This is the sixth positive week for the three indexes.

Strong earnings from big banks, Taiwan Semiconductor Mfg. (TSM), United Airlines Holdings (UAL), and Netflix, Inc. (NFLX) injected optimistic energy into the stock market.

Tech Stocks Hold Steady

The tech-heavy Nasdaq Composite ($COMPQ) may not have hit all-time highs, but its daily chart is worth a closer look. An ascending triangle formation has reached its apex, indicating indecision among investors. The breadth indicators in the lower panels below the price chart echo this indecision.

CHART 1. NASDAQ COMPOSITE CONVERGING AT TRIANGLE APEX. The Nasdaq Composite seems to be at a point of indecision. This could continue until Tech stocks report quarterly earnings.Chart source: StockCharts.com. For educational purposes.

The Nasdaq Bullish Percent Index (BPI) is trending higher but is registering at 57.76, which is slightly bullish. The percentage of Nasdaq stocks trading above their 200-day moving average is also lukewarm, and the Nasdaq advance-decline line isn’t showing strong bullish participation.

Investors are probably waiting for Tech earnings. Until then, the index will probably stay put unless some unknown market-moving event occurs before then. The indecision in Tech stocks isn’t stopping investors from shifting to other areas of the market.

Mid-Caps Might Flatten

The S&P 400 Mid Cap Index ($MID) broke out of its trading range in September and has been trading above it since then. The index hit an all-time high this week, but has started to show signs of flattening (see last two bars in chart below).

CHART 2. MID-CAP STOCKS BREAK OUT OF RANGE. After hitting an all-time high, the S&P 400 Mid-Cap Index is stalling.Chart source: StockCharts.com. For educational purposes.

The percentage of $MID stocks above their 200-day moving average is 73, which is pretty healthy. The advances still need higher volume to push the index higher. Until that happens, the mid-cap asset class may stall.

Bitcoin Breaks Out, Gold Glitters

Bitcoin has also shown its might this week. The weekly chart shows Bitcoin breaking out of a flag pattern (see below).

CHART 3. BITCOIN BREAKS OUT OF A CONSOLIDATION PATTERN. A breakout plus a possible MACD crossover could send Bitcoin prices higher. Note that the crossover is close to the zero line, an encouraging sign.Chart source: StockCharts.com. For educational purposes.

After hitting the measured move targets following the previous consolidation, $BTCUSD has been in an extended consolidation pattern and has finally broken out. A bullish crossover in the moving average convergence/divergence (MACD) could occur. The crossover is close to the zero line, a criterion I look for. Look at what happened to the price of Bitcoin the last time a crossover took place at the zero line! Bitcoin could move higher by about 42.5%.

Speaking of all-time highs, gold prices are on fire. The SPDR Gold Shares ETF (GLD) has been in an uptrend since early March, and central bank interest rate cuts have propelled gold prices higher (see chart below).

CHART 4. GOLD PRICES ON A TEAR THIS YEAR. GLD has been following a typical uptrend, going through consolidations, breaking out of them, and continuing its ride higher.Chart source: StockCharts.com. For educational purposes.

GLD could potentially rise above $250, but it’s difficult to set an entry point unless there’s a pullback. If you are considering going long now, apply stringent stop losses.

The Atlanta Fed GDPNow is estimating a 3.4% growth in Q3 2024. This has led investors to think the Fed will not cut interest rates in its November meeting. However, the CME FedWatch Tool shows a 92.9% probability of a 25 basis point cut. So, if there’s a rate cut in November, GLD could rise higher. This can change though, considering we’re less than three weeks away from the meeting, which happens to be right after the U.S. presidential election.

Looking Forward

Next week is thin on economic data, but earnings season continues. It’s not a strong week for Tech earnings, so the Nasdaq could continue its indecisive price action. As for the rest of the market, there could be more of the same. As always, anything could happen over the weekend that could send things awry.

End-of-Week Wrap-Up

S&P 500 closed up 0.85% for the week, at 5864.67, Dow Jones Industrial Average up 0.96% for the week at 43,275.91; Nasdaq Composite closed up 0.80% for the week at 18,489.55$VIX down 11.88% for the week, closing at 18.03Best performing sector for the week: UtilitiesWorst performing sector for the week: EnergyTop 5 Large Cap SCTR stocks: Insmed Inc. (INSM); Carvana (CVNA); Ubiquiti, Inc. (UI); Applovin Corp (APP); Cava Group, Inc. (CAVA)

On the Radar Next Week

Fed speechesSeptember Existing Home SalesSeptember New Home SalesEarnings from Tesla (TSLA), General Motors (GM), Verizon Communications (VZ), Coca Cola (KO), among others

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

0
FacebookTwitterGoogle +Pinterest
previous post
USTR Acknowledges China Tariffs Failed, Will Continue Anyway
next post
Be On the Lookout for THIS During Earnings Season!

You may also like

The Ord Oracle November 1, 2022

November 2, 2022

The Ord Oracle June 19, 2023

July 19, 2023

Analyzing SIL, USO, and NVDA: Could These Bullish...

May 29, 2025

Should We Use Weakness To Accumulate NVDA Before...

October 22, 2023

Sector Spotlight: Sector Rotation Model All Over the...

January 17, 2023

Time for Sweet Talk: Sugar Futures

January 23, 2024

These Sectors are Showing Strength as S&P 500...

May 21, 2024

Is It Time to Buy Intel?

September 6, 2024

Week Ahead: NIFTY Stares At A Potential Stalling...

August 20, 2022

Market Rally or Fakeout? How Politics and Earnings...

April 12, 2025

    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 celebrates Supreme Court limits on ‘colossal abuse of power’ by federal judges

      June 27, 2025
    • Second Amendment ‘setback’: Gun tax cuts stripped from Trump’s ‘big, beautiful bill’

      June 27, 2025
    • Don’t Give Big Businesses Immunity from Litigation

      June 27, 2025
    • Unmasking Medicaid Money-Laundering Schemes: Medicaid Financing Gimmicks 101

      June 27, 2025
    • Top moments from the Trump-Biden debate that changed the course of the 2024 election

      June 27, 2025
    • Trump exerted ‘maximum pressure’ on Iran and Israel to ‘deliver peace’: Leavitt

      June 27, 2025

    Categories

    • Business (8,329)
    • Investing (2,077)
    • Politics (15,831)
    • Stocks (3,173)
    • 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