Riding the Post Election Wave and My Weekly Portfolio Moves

November 11, 2024 - Update

Let’s start with the NASDAQ weekly chart. The index had a very strong week, closing up +5.7%:

• All key moving averages are pointing upward.

• Strong bullish candle with high volume.

• The NASDAQ is outperforming the S&P 500.

• Positive momentum, with a recent bullish crossover in the MACD.

• We are not yet in an overbought zone.

From a macro perspective, we have:

• A clear winner of the elections, reducing uncertainty.

• A rate cut from the Fed, with hints of more cuts in the future.

• GDP growth forecast of 2% for Q4.

• An inflation rate under control at 2.6%, which is not concerning for now.

My Take

• The backdrop for stocks remains favorable.

• Valuations in some sectors (e.g., AI and tech) could become an issue as they may start to look unsustainable.

• The market itself could become overextended, making corrections an opportunity.

• Managing risk is key to preserving gains as much as …