Beyond Apple and Nvidia: The S&P 500 is the Real Indicator
3min read Morning, guys!
As we've discussed before, the S&P 500 fully recovered from the "Black Monday" market plunge on August 5th and even hit a new intraday high. If you're a loyal user and reader of CrazyY Trades, you've likely noticed the updates on our app, highlighting the recent S&P 500 market trends. Additionally, we've sent out Web and SMS notifications to a select group of Aime Pro subscribers, drawing attention to the precious metals market, especially gold price, which hit a historic high during the Asian trading session on this very Monday.
As we've discussed, why should we shift our focus from the likes of Apple and Nvidia to the broader S&P 500 index? Well, last Friday's quadruple witching day saw a significant rebalancing of funds, and Apple, in particular, faced a sell-off reminiscent of Warren's recent divestment. There was a noticeable surge in Apple's trading volume in the final ten minutes, with massive block trades occurring just as the 4 PM Eastern close. While we can’t say for sure if this is directly related to Buffett's actions, the sharp decline is certainly eye-catching.
As for Nvidia stock price, its valuation has become quite stretched. In a market that's always looking ahead, the initial euphoria around AI is likely to wane over time, much like the electric vehicle hype a few years ago or the dot-com bubble many many years ago. While we're not predicting an imminent crash due to AI-related concerns, it's clear that the market's enthusiasm for AI may cool off and some AI-related companies stock prices, such as SMCI and MU, have experienced a hard landing, with their stock prices plummeting in recent months. .
Given these factors, we believe that investors should consider broadening their focus to the S&P 500 index. This index offers a more diversified and potentially safer way to participate in the broader market rally. By investing in the S&P 500, you're essentially betting on the overall health of the U.S. economy, rather than the fortunes of a few individual companies -- This aligns with the current economic and market landscape. The Federal Reserve, led by Chair Powell, has shown courage to cut interest rates by 50 basis points. Additionally, the U.S. has reported steady growth in GDP and consumer spending for the third quarter, while unemployment remains low and inflation continues to ease. Moreover, the S&P 500 is projected to see a 4.6% year-over-year earnings growth for the third quarter of 2024. If this projection holds true, it would mark the fifth consecutive quarter of year-over-year earnings growth for the index.
While I understand that there are various types of traders in the market, we previously recommended a practical product for our day traders. This time, I try to tell you who are better suited for trading the indexs or those seeking simpler trends and potential returns. For these users, I would recommend Magic Signal product.
As you can see from the chart below, Magic Signal product has consistently provided buy signals for the S&P 500 ETF since the beginning of the year, resulting in over 20% returns this year. Even during the market downturn in August, signal remained unchanged and accurate, predicting the subsequent rally. This remarkable consistency allows subscribers to not only select promising stocks but also time their investments optimally. For instance, if you had followed our initial buy signal, you would have already secured over 20% gains this year, an incredible achievement for majority of investors.
In summary, we want our users to confidently trade on the upward trend of the S&P 500 index amidst market volatility and reap substantial profits. For controversial or volatile tech stocks, a more cautious approach might be prudent. For those seeking a product to enhance their trading and provide timely decision-making support, I would recommend Magic Signal.
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All contents above such as comments and links posted or shared are opinions of the respective author only and do not reflect the opinions, views, or positions of Ainvest Fintech, any affiliates, or any employees of Ainvest Fintech, or its affiliates. Please consult with a qualified financial professional for your personal financial planning and tax situations. Points and cash coupons may be redeemed only through the Ainvest app and have no other value.
This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon or risk tolerance.
