Read This Before You Dump Your Losers

The name of the game is “Catch Up.” [Jeff Clark's Market Minute]( Read This Before You Dump Your Losers By Jeff Clark, editor, Market Minute The name of the game is “Catch Up.” And lots of stocks look ready to play. The major stock market indexes are at all-time highs. The S&P 500 is up 17% so far in 2024. The NASDAQ is up 24%. But as many financial television talking heads have correctly pointed out, the breadth of the advance has been abysmal. There are more stocks falling than rising. The list of stocks making new 52-week lows is longer than the new high list. Indeed, only a handful of stocks have contributed to the bulk of the gains of the stock market indexes. Most stocks are underperforming this market rally. As a result, most investors are likely unhappy with their returns so far this year. Many are probably asking themselves, “Why don’t I just sell everything and put the proceeds into NVIDIA (NVDA)?” That would be a mistake – because the game is changing. Recommended Link [The AI Presentation ‘They’ Don’t Want You to See]( [image]( Wall Street legend confesses, “I feel a sense of duty to share what I know with as many people as I can… that’s why I made this free for all to view.” [Click here to see it.]( -- Losers Can Catch Up Quickly For the first six months of the year, the stock market played “follow the leader.” Strong stocks got stronger. Weak stocks got weaker. NVDA was the strongest of the strong stocks, posting a gain of 160% year-to-date. But that momentum is waning. For the past month NVDA is up “only” 2% – matching the return of the S&P 500. Granted, nobody should be disappointed earning “only” 2% in one month. My point, though, is rather than leading the market higher – as it had done since the start of the year – NVDA was merely marching in line with the market. The larger gains are starting to show up in the lagging stocks. Consider, for example, the recent action in Tesla (TSLA)… Free Trading Resources Have you checked out Jeff's free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. TSLA started the year at $240 per share. One month ago, it was trading at $170. So, while the S&P 500 was posting a double-digit gain, TSLA shares were lagging behind – down 29% for the first five months of 2024. But look at what has happened since then… [Image] [(Click to enlarge image)]( TSLA is up 47% in just one month. The stock is now positive on the year. It has gone from one of the stock market’s worst performers of 2024 to one of the best performers of the past month. In other words, TSLA has played one heck of a game of Catch-Up. I suspect that’s the game the stock market will play for the rest of the year. So, rather than dumping the losers and plowing the proceeds into the stock market’s highflyers, traders should look at the stocks that have underperformed the market so far this year. And then ask, “Are these stocks ready to play Catch-Up?” Best regards and good trading, [Signature] Jeff Clark Editor, Market Minute [Jeff Clark's Market Minute]( Jeff Clark Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.jeffclarktrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Jeff Clark Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-800-752-0820, Mon–Fri, 9am–7pm ET, or email us [here](mailto:contactus@jeffclarktrader.com). © 2024 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](