This Rare Setup Means the Nasdaq Boom Can Continue

You might think this year's massive gain in tech stocks would hurt future returns. But history shows a different outcome... [Stansberry Research Logo] Delivering World-Class Financial Research Since 1999 [DailyWealth] This Rare Setup Means the Nasdaq Boom Can Continue By Brett Eversole --------------------------------------------------------------- The first half of 2023 – at least in the investment world – was one for the ages. Stocks absolutely soared. The S&P 500 Index was up 17%. But that was nothing compared with the tech-heavy Nasdaq 100 Index. It was up 39% in the first half of 2023... nearly 2.5 times the S&P 500's return in the same time frame. That massive gain has the index stretched to a rare level. You might think that would hurt future returns. But history shows a different outcome. Instead, this rare setup means the gains will likely continue. And we could even see 23% upside over the next year. Let me explain... --------------------------------------------------------------- Recommended Links: [Here's What You Missed Last Week – 2023 AI Race]( Marc Chaikin helped build Wall Street, and Dr. David Eifrig is a former vice president at Goldman Sachs. With more than 90 years of combined investing experience, they both agree: Artificial intelligence is a double-edged sword that could either make or break your wealth. But they believe most people don't know the real story! That's why they joined forces last week to cut through the hype and answer all your burning questions about what AI could mean for you and your money in 2023. [Click here to tune in now (and get three free stock predictions)](. --------------------------------------------------------------- [BREAKING NEWS: '3,050% Currency Trade' Just Went Live]( Days ago, the Federal Reserve released a new money platform that will be adopted by the U.S. Treasury, Social Security, and more. It's an investment opportunity we may never see again in our lifetimes. [Click here for the full details (including a free recommendation)](. --------------------------------------------------------------- With nearly a 40% jump in just six months, no wonder prices feel stretched to the upside. You might think that tech stocks have risen too far, too fast... and that a fall to earth is imminent. But in the case of the Nasdaq 100 today, that's not a smart bet to make. To see this, I looked at the index versus its long-term trend, or 200-day moving average (200-DMA). That's simply the average of the last 200 closing prices. The index is in an uptrend if it trades above the moving average. Below that level, the index is in a downtrend. And longtime DailyWealth readers know you want to buy when the trend is in your favor. We also know that as the price moves further above the 200-DMA, the risk of a snapback increases. So being too high above the long-term trend seems scary. And right now, the Nasdaq 100 is massively above that level. Take a look... The Nasdaq 100 was more than 20% above its long-term trend line for most of last month. It hit 24% at its peak. And that's a crazy reading, considering the long-term average is around 4%. To see what that means going forward, I looked at every new instance of the index hitting 20% above its 200-DMA since 1985. This has only happened 15 other times. And it has a history of leading to fantastic returns. Take a look... The Nasdaq 100 has an impressive long-term track record. It has led to 13.5% annual gains over the past four decades. And surprisingly, you can increase those returns by buying when the market stretches above the long-term trend like it's doing today. Similar instances led to 7.3% gains in three months, 12.9% gains in six months, and 22.9% gains over the next year. That's fantastic outperformance. What's more, this isn't what we'd expect to see. Typically, this kind of setup would lead to a slowdown in returns. But in this case, it tells us that the uptrend is on fire... and that it'll continue. In simple terms, the market is firing on all cylinders right now. You can choose to fight it and look for reasons not to invest. Or you can accept reality and get on board. I recommend you do the latter. Good investing, Brett Eversole Further Reading "The S&P 500 has staged an incredible rally after last year's pain," Brett says. Like tech stocks in particular, the entire market has been on the rise. Investors are still on edge, but history tells us that the bears will miss out... [Learn more here](. "Just owning stocks is one of the simplest and most profitable long-term investments you can make," writes Brett. But buying at the right time will boost those gains – and the opportunity is in place right now. [Read more here](. Market Notes HIGHS AND LOWS NEW HIGHS OF NOTE LAST WEEK JPMorgan Chase (JPM)... financial giant S&P Global (SPGI)... financial analytics Apple (AAPL)... iconic tech brand Microsoft (MSFT)... tech giant Meta Platforms (META)... social media giant VMware (VMW)... cloud computing Adobe (ADBE)... cloud services Salesforce (CRM)... customer-management software Spotify Technology (SPOT)... audio streaming Uber Technologies (UBER)... ride hailing Intuit (INTU)... tax-prep software Airbnb (ABNB)... online vacation rentals Vertex Pharmaceuticals (VRTX)... pharmaceuticals Intuitive Surgical (ISRG)... medical technology Cintas (CTAS)... uniform supplier Constellation Brands (STZ)... beer and wine Molson Coors Beverage (TAP)... beer Darden Restaurants (DRI)... Olive Garden, LongHorn Steakhouse Skechers U.S.A. (SKX)... shoes and accessories Trane Technologies (TT)... HVAC manufacturer Sherwin-Williams (SHW)... paint United Airlines (UAL)... airline FedEx (FDX)... package delivery NEW LOWS OF NOTE LAST WEEK Verizon Communications (VZ)... telecom AT&T (T)... telecom Crown Castle (CCI)... communications REIT Monro (MNRO)... auto repair and tires --------------------------------------------------------------- [Tell us what you think of this content]( [We value our subscribers' feedback. To help us improve your experience, we'd like to ask you a couple brief questions.]( [Click here to rate this e-mail]( You have received this e-mail as part of your subscription to DailyWealth. If you no longer want to receive e-mails from DailyWealth [click here](. Published by Stansberry Research. You're receiving this e-mail at {EMAIL}. Stansberry Research welcomes comments or suggestions at feedback@stansberryresearch.com. This address is for feedback only. 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