Cooler heads prevailed in the Middle East this week…and that has put new highs back in play!
Just two days ago, I wrote that “running for the hills probably isn’t the best play.” And I shared a pair of charts illustrating that selloffs driven by geopolitics tend NOT to crush markets over the long term.
Now, as you can see in this MoneyShow Charts of the Day, we’re only a whisker away from new S&P 500 Index (^SPX) highs! The closing high on February 19 was 6,144.15…compared with yesterday’s close of 6,092.23.
Source: StockCharts.com
Looking at the chart, I’m also encouraged that the move was a “gap” breakout – one that came after several days of consolidation. It also followed a strong test and upside reversal off the 20-day EMA. For good measure, the Invesco QQQ Trust (QQQ) DID close at a new high...though YES, it was only by a smidge.
I’ve been solidly in the “Be Bold” camp for markets since Q1 2023. More recently, I’ve noted that you should stay bold – but in a SELECTIVE fashion. That means zeroing in on particularly strong sectors (financials as an example), asset classes (precious metals), and groups (global/international stocks) with the best combination of macro tailwinds and strong technicals.
That approach has been working. I think it’ll continue to work. And I hope it’s paying off for you!
