Stock Market Update Tuesday January 9, 2024 The strong stock market rally on Monday did not continue on Turn Around Tuesday. This aligns with the notion that, in line with seasonal patterns, the stock market is presently undergoing a corrective phase. During downtrends or corrective periods, counter-trend rallies frequently occur. Yet, these rebounds deplete the accessible buying pressure rapidly, often within a single day. When there's nobody remaining to act as the marginal buyer, the rebound loses momentum.
One year ago today our algorithm alerted a buy. This is truly remarkable Nvidia ($NVDA) has witnessed a staggering increase of $130 billion in market capitalization within the first six trading days of 2024. Since hitting its low point in October 2022, $NVDA has now accumulated an astounding $1 TRILLION in market as of today, the stock has surged by an impressive 400% from its lows in 2022. In just two years, Nvidia has transformed from a company barely ranking among the top 30 by market cap to now holding the position as the 6th largest public company globally.
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Here is a chart of Tesla, we recommend waiting for our algorithm to give us a buy signal.
Away From Stocks: Treasury's as the long bond edged higher by one basis point to 4.18% and two-year yields remained at 4.36%. WTI crude bounced back above $72 a barrel, gold finished little changed at $2,030 per ounce and the VIX closed at 12.77
The downtrend gained strength today, even though it might not be immediately apparent as most issues experienced declines. Notably, big tech companies saw gains again. Ideally, we'd see this bullish consolidation fail, as the best moves often come from failed ones. Mastering the skill of navigating challenges during a swing trade is a hallmark of a successful trader, and this proficiency is honed by managing through counter-trend rallies like this one. Additionally, being long in the stock market is generally more straightforward than being short because there are more opportunities to sell into strength than to buy at the bottom.