Date: March 18, 2024

Stock Market Trend Morphing As It Weakens

Anyone notice how the gains have moderated lately? The stock market seems to be transitioning from strongly up to modestly up and sideways.

Here is the Dow Industrials. Not a lot to criticize nor worry about. Just an observation.

Here is the NASDAQ 100.

And finally, the Russell 2000.

This is how markets digest or mildly correct after a big run. And as I have written for some time, I am looking for a Q1 peak, followed by a low by Memorial Day.

Nvidia will be even more spotlighted this week, if that’s possible, with their big event in CA. You already know my feeling. While we do own it, I have pruned the size of the position back multiple time over the past 6 months. Smart investors have been doing the same thing, regardless of whether the stock has peaked or it has another run to $1000. And no, I am not a bear on the company. Those kinds of comments that were emailed are just plain nonsense.

On Friday we sold some levered NDX.


Paul Schatz, President, Heritage Capital