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August is shaping up to be a poor month for the Nasdaq Composite, but history suggests that it will only get worse before it gets better. The Nasdaq Composite is headed for its worst month since May, down more than 4%. The Dow Jones Industrial Average and the S & P 500 were down more than 2% and 3%, respectively. September is actually the only month out of the year that the Nasdaq Composite averages a negative return, as well as the lowest rate of advance. On Monday, however, the Nasdaq Composite appeared to consolidate somewhat from its August lows.
Persons: It's, Sam Stovall, Stovall, John Roque, NVDA, manna, sloppily, Roque, — CNBC's Michael Bloom, Gabriel Cortes Organizations: Nasdaq, Dow Jones Industrial, Nvidia, Research, Meta
It's taken gold prices a long time to get this high — 5,000 years, give or take a few centuries — and it looks like the yellow metal could keep climbing. "Gold prices have benefited in recent weeks from safe haven demand amid concerns on the banking sector, as well as a view that the likelihood of a recession (i.e., hard landing) have materially increased. "Lower rates, coupled with inflation still well above the 2% target, would be positive for gold prices," he added. @GC.1 YTD line Gold price this year Tariq expects gold to average $1,925 an ounce in the second quarter, a 10% increase from Credit Suisse's previous target. Roque has a price target at $2,322, implying 14% upside from here.
Investors looking for something to blame the recent stock market swoon need only to look at the bond market. Given this recent trading action, market technicians are looking at rates as the key catalyst for stocks going forward. US10Y YTD mountain 10-year in 2023 This back and forth raises questions on who should investors listen to: the stock market, or bonds. The stock market has been viewed by market participants as expecting the Fed to successfully cool inflation while avoiding a recession, a scenario referred to as a "soft landing." "The upward pressure on the terminal rate had an adverse effect on the stock market.
Investors looking for something to cheer about this holiday season may want to consider shorting this "naughty list" of stocks, according to 22V Research's chart analyst. Using a technical scoring system that rates the stocks from weakest to strongest, analyst John Roque outlined a number of stocks to short heading into the holidays in a note to clients Wednesday. Short-selling, or selling shares short, is the practice of making a bet against a stock by borrowing shares and selling them with the plan to repurchase at a cheaper price and profit from the difference. Here are some of the names Roque highlighted: Roque highlighted heavily shorted stock GameStop among his picks, pointing out the failed rally attempts since September. On Tesla , Roque pointed out that it's forming a "head-and-shoulders" topping pattern over the long term.
The Dow Jones Industrial Average has gained 4.9% in November, outperforming the other major averages. MKM chief market technician JC O'Hara said in a note to clients on Sunday that "old school leadership" is here to stay. "If this old index can continue to push higher and deeper into overbought territory, that will help break the S & P 500 out." One way for investors to play this trend is ETFs of old-school stocks, including the SPDR Dow Jones Industrial Average ETF (DIA) . The fund tracks the 30 stocks in the Dow Average, with an expense ratio of 0.16%, or $1.60 for every $1,000 invested.
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