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Is It Grandpa’s Turn?
The topic of our Pro webinar later today - at 5pm Eastern as always - is, who will benefit from the next bull move in the market. If inflation continues to soften, if GDP continues to hold up, and if the Fed backs off the gas a little, it’s reasonable to expect markets to continue the upward trajectory achieved since the Q4 2022 lows.
Each of the indices - the Nasdaq, the Dow, the S&P and the Russell 2000 - have put in gains since those lows, but the Dow has led the way and the Nasdaq has been the laggard. The question is, if markets keep moving up, will that trend continue.
There are two questions in fact, with different timeframes.
1 - Will the Dow and its constituents continue to be a good short-term momentum play? In instruments as simple as the DIA 0.00%↑ ETF or as fiendish as the UDOW 0.00%↑ ETF, gains of 18% and 60% have been achieved respectively from the Q4 2022 lows to the present prices (as of 1100EST today). The Nasdaq can only dream of this.
2 - Is this a longer term trend or is now the time to be quietly accumulating the Nasdaq and its constituent parts during this period of relative weakness?
We’ll consider this by looking at the indices themselves, the single- and triple-index long ETFs (DIA / QQQ and UDOW / TQQQ respectively), and the major constituents of the indices.
Don’t miss it. We run on a live, open-mic, anyone-ask-anything basis.
Pro members, register below.
The recording will also be available for Pro members only.
If you’ve yet to move up to the Pro tier of this service, you can do so right from the button below.
If you have any problems upgrading whatsoever just send us a message from the contact form on our website - we’ll take care of it for you - just click this link.
Cestrian Capital Research, Inc - 11 Jan 2023
DISCLOSURE - Cestrian Capital Research, Inc staff personal accounts hold long positions in TQQQ 0.00%↑ .