[b]SA Markets – January 17th, 2025[/b]Market Overview:
Asia: Markets started red but turned green later in the day.
China: Up for the fourth consecutive day.
Nikkei (Japan): Trading in its lower range with a slight bounce, but not significant.
Europe:
EU50: Reached an all-time high, coming out of a long base stretching back to March 28th, 2024.
Positive sentiment driven by lower inflation data and expectations of reduced rates.
Germany and France: Both showing strength, with Germany also reaching a new all-time high.
STOXX 600: Still trading below the range it has been stuck under since May 15th, 2024.
Bitcoin and Cryptocurrencies:
Bitcoin: Trading above $100,000, currently at $102,000. Last time it was at this level (January 6th), it was quickly rejected.
Ethereum: Third inside day.
Solana: Testing highs from January 6th, with news that it might be included in Trump’s reserve holdings.
IBD 250 Pre-market:
Mixed bag with some red names but many showing green and gapping up pre-market.
Screener Results:
20% Gainers (Past Week):
31 names, led by Constellation Energy .
Sectors include health technology and commercial services.
8% Gainers (Past Week):
294 names, with notable strength in luxury names, Bitcoin-related stocks, and finance.
Louis Vuitton: Stands out, up 10%.
8% Losers (Past Week):
156 names, including Toyota , Porsche , Las Vegas Sands , Snap , and GameStop .
Dominated by health technology, electronic technology, services, and utilities.
20% Losers (Past Week):
31 names, primarily in health technology.
Notable losers include Moderna and FDA Aviation .
ETF Highlights (Yesterday):
Strongest: XLU (Utilities), XLRE (Real Estate), and Broker-Dealer ETFs.
Weakest: Regional Banks, Oil, and Uranium ETFs.
Additional Observations:
Rate-sensitive sectors showed strong performance yesterday, benefiting from recent inflation data.
RSP (Equal-Weighted S&P): Above the 50 EMA, showing strength and indicating that breadth is holding up despite weakness in large-cap names.
VIX: At 16, showing an inside day with no major moves lower.
Plan of Action:
Exercise caution with new trades after several strong days in the market.
Await a pullback before adding positions, focusing on names with potential for strong 3-5 day moves.
Start small with any new positions as the market might need time to cool off.
Upcoming Events to Watch:
Monday: U.S. markets closed for a holiday.
Next Week: Potential market movements with the inauguration of a new president.
