December 30, 2023

 Commentary

On the final trading day of 2023, the stock futures were little changed as Wall Street anticipated a successful year end. The S&P 500 was less than 0.5% off from a new record high, with a 24.6% rise on the year. The Dow increased by 13.8%, while the Nasdaq Composite led the way with a remarkable 44.2% gain, the largest annual increase since 2003. Notably, the "Magnificent 7" stocks, including Nvidia and Microsoft, saw significant gains amid the excitement over artificial intelligence. As the Federal Reserve signaled the end of rate hikes and the possible initiation of rate cuts, investors have grown more confident in a potential "soft landing" to avoid any recession. Consequently, the rally in the market broadened to conclude the quarter, with industrial-heavy Dow and small-cap Russell 2000 making steady gains. Despite suspicions of an overbought market, experts such as Ryan Detrick from the Carson Group have predicted that there will likely continue to be more room for stocks to run in the upcoming period. Source: CNBC

Record highs on the final trading day of the year rarely happen

All eyes are on whether the S & P 500 can close the year at a historic high, a rare event that has only happened eight times since 1926 and four times since 1963. The S & P is currently up 0.9% in the first four of the seven trading days of the Santa Claus rally. In the past, the average gain during this period has been 1.3%. Mastercard, Capital One, and American Express have seen record highs, with credit card balances also at historic highs. Some industrial stocks, including Caterpillar, Ingersoll Rand, Eaton, Parker-Hannifin, Union Pacific, and General Electric, have also reached new highs, distracting investors from the fact that the S&P 500 is overbought and expensive. Market traders are looking forward to catalysts including FOMC minutes, jobs report, Euro zone CPI, US CPI, and the onset of the earnings season. Source: CNBC

These 3 Companies Can Be the Next Stock-Split Stocks in 2024 
Three companies are predicted to conduct a stock split in 2024, according to an analyst at The Motley Fool. Those companies include semiconductor behemoth Broadcom, fast-casual restaurant chain Chipotle Mexican Grill and warehouse club Costco Wholesale. Broadcom's growing involvement in artificial intelligence and 5G technologies makes it a compelling candidate, while Chipotle's quality ingredients, pricing power and innovative strategies provide strong support. Costco's bulk-purchasing power, membership-driven operating model and provision of basic need goods continue to make it a robust investment. These stock splits could make shares in these companies more accessible for retail investors. Source: Yahoo Finance

XAG/USD falls sharply to near $23.70 as US Dollar recovers
The price of silver, represented by XAG/USD, saw a sharp fall near $23.70 due to a recovery in the US Dollar Index (DXY). The downturn in silver's price has been attributed to an exaggerated market reaction to anticipated rate cuts by the Federal Reserve (Fed). Investors now hope that the previous sell-off in the USD Index was overstated, resulting in this unexpected rebound. The USD Index has since rebounded near 101.40, with uncertainty still surrounding this broader bias as market participants anticipate a Fed interest rate cut in March 2024. In the future, investors will be closely watching data from the US Manufacturing PMI and December's employment data. The silver price trajectory indicated a potential for further downside, based on the current downward trend of the 20-period Exponential Moving Average and a bearish shift in the Relative Strength Index. Source: FXStreet

Recent stock market strength bodes well for investors, experts say 
U.S. stock market's recent strength has caught the attention of experts and investors alike. The Dow Jones Industrial Average has hit fresh closing highs twice in this week, while the S&P 500, up by more than 24%, is on track for its ninth consecutive week of gains. The NASDAQ has surged by over 44% year to date, outpacing other major indices. A more dovish Fed and a potential downturn in rates have contributed to the upswing, specifically benefiting tech stocks including major companies like Microsoft, Apple, Amazon, Nvidia, Google, Meta, and Tesla. While market volatility is expected during the election year, experts believe the recent run-up could be a positive indicator for stocks in the coming year. Investors are advised to stay the course and invest for the long term without reacting to short-term market fluctuations. As more individuals participate in 401(k) retirement plans, it is also recommended to increase contributions by 1% annually for greater long-term benefits. Source: Dayton Daily News

Change Your Life – One Tiny Step at a Time

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But it can seem that to achieve your goals, you have to become a different person. Someone who is consistent, puts in more effort, has discipline and willpower. Maybe you have tried your hardest to be like that. And it worked! For a while. Until you find yourself slipping back into your old ways. In the end, you always seem to fail. And with every failed attempt, you become more and more frustrated and annoyed with yourself. 

If you believe “success and hustle” internet, it is all your own fault: if you don't succeed, you just didn’t want it enough and the failure is all you. But change is actually hard. But as with most things in life, understanding why makes things easier. Click HERE to watch.

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CTG Daily Commentary is published by Capital Trading Group, LLLP and Nell Sloane is the editor of this publication. The information contained herein was taken from financial information sources deemed to be reliable and accurate at the time it was published, but changes in the marketplace may cause this information to become out dated and obsolete.

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