[Altos Weekly Traders Edge] Smooth Sailing in 2024...Details Inside

Sponsor EMAIL}/redirect [Privacy Policy](EMAIL}/redirect?privacy=follow) | [Advertiser Disclosure](EMAIL}/redirect?disclosure=follow) Why 2024 Might Be a Smoother Ride for Investors Weekly Market Overview Hi Traders, Forget white-knuckling your armrests and bracing for turbulence. As 2023 mercifully winds down, market signals are painting a surprisingly cheery picture for 2024. It's almost like Santa brought an early gift for investors this year – a roadmap to smoother sailing. Think back to last December. The market was a jittery mess, teetering on the edge of a cliff. This year? Different story. The S&P 500 and Nasdaq are flirting with record highs, the Dow Jones has already popped champagne, and a whopping 81% of stocks in the S&P 500 are basking near their 12-month peaks. That's a far cry from the 46% stragglers we saw last year. It's not just about individual stars, though. The whole market constellation is twinkling brighter. Technical metrics like the "moving average convergence divergence" – fancy speak for measuring momentum – are flashing green across the board. Even the Russell 3000, that barometer of broad market health, has two-thirds of its members comfortably above their 200-day moving average, compared to a measly 36% last year. And let's not forget the sector superstars. Tech and industrials are strutting their stuff, nearing multi-year highs and leaving sectors like healthcare and utilities in the dust. It's been a year of outperformance for the tech-savvy and chatterboxes of the communication services world. Now, I'm not saying it's going to be all sunshine and rainbows. There will be bumps along the road, of course. But compared to the rollercoaster ride of 2023, I suspect 2024 might feel more like a scenic cruise (with occasional detours through choppy waters, of course). Now, take a deep breath, unclench your fists, and maybe even crack open that celebratory bottle of bubbly. The market might just be handing you a smooth sailing pass for the new year. Just remember, even the most luxurious cruise ships have life jackets, so keep a level head and stay informed. Happy investing! - The Team at Altos Trading In the next article: The S&P 500 is on the verge of breaking its record after a long and narrow rally, but what does that mean for stock-market investors? Sponsor [Please take a moment to watch this…]( Some are calling it the greatest trading advancement of the last year… A 34 year old man from central Florida has uncovered a totally new way to trade options… Already this year it’s allowed real people to [capture top returns of 50%...100%... Even 200% overnight…]( S&P 500 is close to breaking its record. Here’s what stock-market investors should know. Stock-market bulls have had a long and unusual journey, but after almost two years, the S&P 500 is nearing its record level. The S&P 500 SPX, the U.S. large-cap benchmark, gained 20.12 points, or 0.4%, to end Tuesday at 4,774.75. That puts the index less than 0.5% below its record close at 4,796.56, achieved on Jan. 3, 2022. Through Tuesday, it’s been 497 trading days since the S&P 500’s last record close. That’s the longest stretch without a record since a 1,375-trading-day gap that lasted from Oct. 9, 2007, to March 28, 2013, according to Dow Jones Market Data. Stocks plunged into a bear market last year as the Federal Reserve started to raise interest rates sharply to curb inflation, which had reached a four-decade high. Equities dropped as Treasury yields, which move inversely to debt prices, increased in reaction to tighter Fed monetary policy. Bonds, by some metrics, had their worst year ever, inflicting a rare double blow to investors who usually see losses in stocks balanced by gains in bonds or vice versa. Stocks hit bottom in October 2022, regaining some ground into year-end before starting 2023 on a positive note as the Fed began to ease the pace of rate hikes. The S&P 500 left its bear market in June, rising more than 20% from its bear-market low set the previous October, before stumbling in late July. That move satisfied widely used criteria for the beginning of a new bull market, but some market observers argue that it requires a return to all-time highs to verify that a new bull market is actually in progress. If the S&P 500 were to reach record territory soon, the nearly 24-month gap between records would be shorter than the average seen in the 14 bear markets since the end of World War II, according to Sam Stovall, chief investment strategist at CFRA. On average, it’s taken 37 months for the S&P 500 to fully recover its losses after a bear slide. What’s so odd about the rally? It’s been very narrow, with gains in 2023 led by the so-called Magnificent Seven group of megacap tech stocks, despite wider participation lately. The S&P 500 has rallied 24.4% in 2023. Weighted by market capitalization, the index’s gains have been driven mainly but not solely by big tech names, a fact shown by an 11% year-to-date gain for an equal-weight measure of the S&P 500 . The Dow Jones Industrial Average DJIA hit a series of record closes this month. It closed Tuesday at 37,545.33, just a few points away from its record finish of 37,557.92, set on Dec. 19. The blue-chip gauge is up 13.3% so far in 2023. The narrowly led rally for the S&P 500 marks an uncommon start to a bull market. That has, at times, led traders and technicians to question the rally’s durability. A close at a new record for the S&P 500 will likely give bulls some limited relief. Stovall noted that after recouping its bear-market losses, the S&P 500 has gone on to rise 5.2% on average over the next 2.4 months before succumbing to another decline of 5% or more, averaging 8.2%. “The good news is that after the S&P 500 recovered all that was lost in the previous bear market, none of the later declines became a new bear market,” he said. There’s no assurance history will repeat itself, but, based on the averages, the S&P 500 would rise an extra 5% from its new all-time high before suffering a another decline of more than 5%. Sponsor [New Customers earn 5.25% APY* (variable)]( Store your money with Cash Reserve, a high-yield account built for peace of mind. New customers earn 5.25% variable APY*—that’s 13x higher than the national savings rate. ** Plus, your money’s FDIC-insured up to $2M†at our program banks and no limits on withdrawals and transfers. **The national average savings account interest rate is reported by the FDIC (as of 5/15/23) as the average annual percentage yield (APY) for savings accounts with deposits under $100,000. [Sign Up Now!]( Disclaimer: The Altos Trading Alert Newsletter is published as an information service for subscribers, and it includes opinions as to buying, selling and holding various stocks and other securities. However, the publishers of the Altos Trading Alert Newsletter are not brokers or investment advisers, and do not provide investment advice or recommendations directed to any particular subscriber or in view of the particular circumstances of any particular person. Altos Trading, including its owner, does not participate in any trades issued through the alert services. Subscribers to Altos Trading or any other persons who buy, sell or hold securities should do so with caution and consult with a broker or investment adviser before doing so. Trading securities and options involves risk. Prior to buying or selling an option, an investor must receive a copy of Characteristics and Risks of Standardized Options. Investors need a broker to trade securities and options, and must meet suitability requirements. Past results are not necessarily indicative of future performance. Performance figures are based on actual recommendations. Due to the time critical nature of trading, brokerage fees, and the activity of other subscribers, there is no guarantee that subscribers will mirror the performance of the service. Performance numbers shown are based on trades subscribers could enter based on the trade alerts. Altos Trading, LLC assumes no responsibility for any losses incurred by any individual or entity as a result of trade alerts or strategies taught through courses or coaching services. 7154 W State Street Suite 169 Boise Idaho 83714 USA Disclaimer: The Altos Trading Alert Newsletter is published as an information service for subscribers, and it includes opinions as to buying, selling and holding various stocks and other securities. However, the publishers of the Altos Trading Alert Newsletter are not brokers or investment advisers, and do not provide investment advice or recommendations directed to any particular subscriber or in view of the particular circumstances of any particular person. Altos Trading, including its owner, does not participate in any trades issued through the alert services. Subscribers to Altos Trading or any other persons who buy, sell or hold securities should do so with caution and consult with a broker or investment adviser before doing so. Trading securities and options involves risk. Prior to buying or selling an option, an investor must receive a copy of Characteristics and Risks of Standardized Options. Investors need a broker to trade securities and options, and must meet suitability requirements. Past results are not necessarily indicative of future performance. Performance figures are based on actual recommendations. Due to the time critical nature of trading, brokerage fees, and the activity of other subscribers, there is no guarantee that subscribers will mirror the performance of the service. Performance numbers shown are based on trades subscribers could enter based on the trade alerts. Altos Trading, LLC assumes no responsibility for any losses incurred by any individual or entity as a result of trade alerts or strategies taught through courses or coaching services. 7154 W State Street Suite 169 Boise Idaho 83714 USA [Unsubscribe]( | [Change Subscriber Options](