September Month Ahead Edition

Positive Seasonality Early Next Week

Hey Market Timer!

It’s that time of month again. . .

Our Special Month Ahead September Edition Is Out Today

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  • Receive In-depth Guidance for What’s Next in the Month of September for:

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Today we will be covering...

Announcements: U.S. markets are closed on Monday, September 2, during Labor Day. The next market update will be on Wednesday, although we may post educational material in the interim.

News Buzz

  • Nvidia’s stock buyback plan is one of the biggest in 2024. 

  • Intel’s stock soars in the hope of a business split. 

  • The Dow Jones Industrial Average® ($DJI) scored a series of new all-time highs in the last several days, lifted by a broadening market featuring strength in sectors outside of tech and the mega caps. Friday marked the fourth record $DJI close last week.

  • Friday's data soothed investors further, with July's Personal Consumption Expenditures (PCE) Price Index up 0.2% month over month, as analysts expected. Core PCE, which excludes volatile food and energy, rose 0.2% for the month and 2.6% from a year ago, below the 2.7% consensus, helping firm notions of a 25-basis point Fed rate cut in September.

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Stock Market Overvaluation

  • Stock Market overvaluation is historically extreme, based on various metrics.

  • A red flag for LT stock market prospects.

  • Expect possible negative returns in the next decade.

  • Not an ST timing signal.

Margin Debt

  • Margin debt fuels stock.

  • It is in a danger category, as I shared many of the LT indicators over the last few months.

  • Not an ST timing signal but an indicator of negative LT stock market prospects.

  • I like establishing an LT position during the culmination of selling due to margin calls, which is not any time soon.

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  • Consider following me on X (former Twitter) in addition to the newsletter, as I often post valuable information there in real time between the newsletters. On Friday afternoon, I posted a newly generated target for Bitcoin.

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Market Summary

As of the market close on 30 August 2024.

What Has Been

  • We warned premium subscribers about a possible turnaround on Thursday, given the positive seasonality of Labor Day and the beginning of September, plus our ST cycle indications and EW counts. The market obliged.

  • The SPX climbed 56.44 points (1.01%) to 5,648.40, roughly flat for the week. 

  • The $DJI rose 228.03 points (0.55%) to 41,563.08, up almost 1% for the week. 

  • The Nasdaq Composite® ($COMP) added 197.19 points (1.13%) to 17,713.62, down nearly 1% from a week ago.

  • The 10-year Treasury note yield (TNX) climbed three basis points to 3.91% but fell about 20 basis points in August.

  • The Cboe Volatility Index® (VIX) fell moderately to 14.96, well below levels above 30 recorded earlier this month.

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