Why should investors be positive about the economy?

Major indices (^DJI, ^GSPC, ^IXIC) faced some pressure during trading and closed Wednesday’s session in the green. Mark Newton, Managing Director and International Head of Technology at Fundstrat International Advisors, joins Regulation Beyond Marketplace Domination Time to talk about key market characteristics starting with the tech-heavy S&P 500 and the interest rate narrative of Fed accumulation. Are there.

Newton believes that “there are many reasons to be constructive about the markets,” to explain this:

“We’re going into a very bullish time of the season in election years. July is very, very good, as is June. I think a lot of investors are concerned about geopolitical risk, political risk and fear of a slowdown in growth. But the bottom line is that, technically, we have more than 70% of all Russell 3000 (^RUA) stocks above their 200-day moving average. This is actually a very good sign.

He additionally fears that rates will fall along with the greenback: “I think the data will continue to weaken along with the marginal. Inflation should start falling like a rock. Despite the fact that gas (RB=F) and every For anyone with food prices high, you are seeing that broader inflation is starting to come down and I think that will be encouraging, not because the weak economy means stocks are good, but because of the Fed’s rate cuts. “It would also be encouraging from a U.S. perspective to come back in line and we will have a little more clarity on when they will start cutting rates.”

For additional insightful sentiment and untouched market movement, click here to watch this full episode of Marketplace Domination Time Beyond Regulation.

This post was written by Melanie Riehl

video transcript

The 1% share is not included in the S and P equivalent weight index.

Although Nvidia didn’t rise, for example, it was the alternative form of heavy cap mega cap tech companies, Amazon, which as we mentioned earlier has a pristine record and what is going on to top $2 trillion in market cap. Markets for more information, not only nowadays but also develop it a bit.

We’re bringing in Mark Newton, managing director and international head of technology at Charity International Advisors.

Thanks for being here.

It’s great to be here.

I need to get some of the charts you’re looking at to help more or less direct us where we’re going.

So here’s the S&P 500 going back to the beginning of the month, if truth be told it’s going back several years and you’ve attracted, contact us, walk us through what you’re optic from a technical standpoint .

So it’s remarkable to understand that the S&P is still dominated by so many huge cap tech stocks.

So the broader market no longer works except the S&P. However, we are up 14.5% month over month.

the story continues

And so, uh, you know, there’s a very nice uptrend, it’s hard to find anything consistent with that, except if you don’t have any generation, obviously you’ve done very poorly.

Uh, a bunch of reasons to be optimistic about the market.

We are headed for extreme weather in election years.

July has a tendency to be very, very spectacular relative to June.

Um, you know, I believe a group of buyers remain nervous about the geopolitical possibility, the political possibility and concerns about a severe recession.

Although technically the base layout, you know, we have over 70% of all Russell 3000 stocks above their 200 current moving average.

Truth be told, this is a much healthier sign.

So certainly, despite the slight breadth decline we’ve detected in recent months, technically the markets are still on a very tone substructure.

And you know, generally throughout election years, they have a tendency to be up until August September before they peak and move up in the polls.

So I have no explanation why without any evidence of a decline in growth it would be said that it will not continue.

Truth be told, I’m still reasonably optimistic.

I believe S and P will stand at or around 5650.

There is a tendency to be very bullish in the first half of July.

This is usually one of the best parts of election month, the first few weeks of July.

So I believe the utility is that PCE could decline, which would cause rates to decline in the dollar and if truth be told, stocks would rally and we would see a broad based rally that we saw It is not known for some time and buyers are eagerly looking for it.

very attractive.

I, too, would like to delve a little more deeply into the question of bread as it has been a topic of much discussion in recent years.

So this is a chart given to us via Bloomberg where they appear in blue on the S and P500.

Next This is the share of stocks within the S&P 200 Present Moving Moderate, which is in red.

And so he sheds light on the gardens where we now know there are huge gaps, that is a kind of garden.

So the S and P continue to rise, although this only shows that there is no momentum for B for many of the stocks inside it.

Is that, how much is that topic?

Well, it just matters that investors don’t need to be told that it’s going down and, and, and it’s not cruel that the market will ride into our correction or roll over to the tech stocks that continue to move up. Can keep and get diversion We again saw wider and wider correlation in 2021.

Um alternatively, we’ll also see what I believe is going to be the beginning of a broader market for playing games.

And we’ve explored this a little bit over the last period of time in the financials, we’ve explored this in fitness offerings with areas like biotech.

We have discovered this across industries.

If truth be told, the Dow Jones seems to be breaking out of a well-defined downtrend these days.

Uh, that gives me a little bit of optimism that buyers are stingy.

You know, we don’t see the euphoria and complacency quite as often, but at the same pace, the broader market is slowly but undeniably poised to become proof that it is capable of starting to move upward. , which I think happens in July.

So let’s take a look at the equivalent weight of S and P.

This is the Invest, Invest ETF that keeps an eye on that and are there also technical signals here that give you optimism that we’ll see a minor breakdown?

Neat, no more.

refuse.

The solution is actually wrong, although I am cruel, for those with an eye on technical research it is a cleverly outlined triangle development.

Whenever you see a bullish surge that turns into a triangle 9 times out of 10, you’ve got a continuation, which means we see a fracture to the upside.

I believe this because I believe rates have started to decline along with the dollar, which is a very unfavorable trend in terms of a story at this point in time.

However, I think as the data continues to weaken at the margins, inflation should start falling like a rock.

However gasoline and food prices are at their peak for everyone.

You may have been disappointed by some of the evidence based on mass inflation.

And I believe that will be encouraging.

Now stocks are not excellent as a result of the weak financial system outlook, but the Fed’s price reduction outlook will come back into the layout and we will have a little extra clarity as to when they start cutting rates.

Although yes, to make mistakes since March, it has been a more difficult market if you don’t own technology, the market has been really sideways, other than, you know, later on from October to March.

So certainly, we want to see that evidence of scale-based action.

I believe that will happen in the coming few weeks.

I’m really very creative.

We will look back at it again.

We were given to get another quick one and in the coming time we were given to send it to Miron right here because we were given some revenue coming out of NVIDIA because this is the chart that is a batch of the public We’re here to see whether we continue to look forward to it or not.

Glimpse.

This is very impressive at the moment, both technically and fundamentally.

It lost $300 billion in market cap in three days.

However, you know, S&P only lost 1%.

So it didn’t really have the level of breakage in the broader indices that a lot of the public thought it might have because it’s more than 5% of the S and PI, similar to NVIDIA.

I personally use nvidia.

I do.

I sent a message to buyers stating 115, 116 is really rocky, you know, reduce time period support.

If it goes down from there, there will be a long term uptrend and with time it will reach as high as 105.

I believe it will go on to outperform corporate Blackwell chips, making it an underwhelming offering.

Buyers are still ordering double and triple.

Technically it’s definitely overbought, but that doesn’t hurt your promotion.

And this is a remarkable explanation why.

We found no evidence of decline in growth.

And now we know that video is being bought through XL’s and alternative ETFs and, and, you know, it’s hard for me to avoid that, you know, for any of you who know our product. ,Tom Lee.

I am, this is a fantastic granny shot that is part of their catalog and, and there are still more reasons to include it.

I believe it is moving from 118 where it is now to possibly as high as 140 in the middle part of July, which could be a big move in the short term of momentum.

So as always I’d love to get your perspective on all this, really dig into it.

Thank you.