SP500 Could Hit a New High with AI, However...

AInvest Morning BriefFriday, Sep 13, 2024 2:24 am ET
2min read

Nvidia's CEO Jensen Huang's recent conversation with Goldman Sachs CEO David Solomon has sent a powerful signal to the market about the strong demand for AI infrastructure. Nvidia stock price has soared more than 10% (see the below picture)since this talk in just 2 days and both Nasdaq and SP500 index has rebounded more than 3% from the CPI low. What a powerful man Jensen is, for the Nvidia 's stock price, for the AI related stocks such as SMCI, AVGO and AMD, and even for the whole market.

How the Magic Signal worked in incredible Wednesday and Thursday and supported my trading strategy..

As we discussed last time, the market, especially the S&P 500, is following its own path . Despite the initial market crash following the CPI report, Nvidia's performance and the market's subsequent recovery demonstrate the ongoing strength of the AI boom. Factors such as strong earnings forecasts, ample liquidity, and increasing risk appetite have contributed to this positive trend, with the SPDR S&P 500 ETF Trust approaching its all-time high. I continue to be amazed by the market's resilience and ability to bounce back .

However, it's important to note some anomalies. The gold price has been rising despite the clear path for interest rate cuts by the Fed, which contradicts historical trends. Additionally, crude oil prices have declined, and the 10-year bond yield has risen in recent weeks. While the market, particularly the Nasdaq, celebrates the AI boom, the bond market and commodity traders have shown caution.

To be honest, Trend Sight gives me more confidence when I am trading for the gold period time

Considering these factors, it's essential to develop a clear strategy and protect your investments. While the market's current trend may seem promising, it's crucial to prioritize risk management. By using the right tools and staying alerted, you can trade more confidently and ultimately achieve long-term success in the market.

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