$NVDA: The Driving Force Behind the S&P 500’s 2024 Rally
NVIDIA’s incredible 170% gain in 2024 has played a pivotal role in the market’s performance, contributing to over 20% of the S&P 500’s return. source : BofA, Mike Zaccardi, CFA, CMT, MBA
Surprise surprise...
energy has been by far the best-performing sector during the Biden administration. Source: HolgerZ, Bloomberg
An update on Germany snap election:
the conservative support has slipped below 30% ahead of the February election. Friedrich Merz’s center-right CDU/CSU alliance leads with 29% in the latest Insa survey, down one point from last week. The AfD also dropped by one point to 21%, while support for Chancellor Olaf Scholz’s Social Democrats (SPD) and the Greens remains steady at 16% and 13%, respectively. 👉 As it stands, a so-called grand coalition between the CDU/CSU and SPD appears to be the most likely outcome Source: HolgerZ, Bloomberg
A shocking chart
Source: Willem Middelkoop @wmiddelkoop on X
The trend is your friend...
The Nasdaq 100 has closed above its 200-day moving average for 466 consecutive trading days, the 2nd longest uptrend in history. $NDX Source: Charlie Biello
⚠️US money market fund assets jumped to a record of $8.2 TRILLION.
This comes as people expect the Fed to pause rate hikes for a few months. We have to remember, this is not money on the sidelines. Moreover, most of this cash has never been in and never will go to stocks. Last but not least, while the ABSOLUTE number is at record high, the RELATIVE number (cash as a percentage of total assets) is near record low. Source: Global Markets Investor, Goldman Sachs
An important remainder ahead of Trump inauguration:
"Don't let your politics get in the way of your investing. The market finds a way forward, regardless of who is in power. The market soared under both Trump and Biden, as it has under most presidents" - Peter Mallouk
History has been made again in stocks:
Over 68% of the S&P 500 stocks have closed higher for 5 consecutive days, matching all previous records since 1928. If the same occurrence happens on Tuesday, it will mark a new record streak. In other words, the market's breadth has significantly improved. The last 2 times when such a streak occurred were in January and June 2019 which resulted in more upside in stocks. A similar trend was seen in September 2009 which resulted in the S&P 500 rallying 8% in the subsequent 3 months. Can bulls capitalize on this momentum? Source: The Kobeissi Letter
