This Week's Stock Ideas

Tuesday, February 20, 2024

Good morning everyone, and congrats to all who caught last week’s monster trades!

As mentioned, equity markets have been on a tear these past few months, and we promised to provide an update if we saw any changes in the trend. While it is still too soon to call, we are noticing signs of the bulls getting tired. The S&P 500 broke above the 5,000 level but failed to hold it. Last Tuesday, we saw a pretty hard gap down, followed by continued selling on Friday and a close at the lows. This could be attributed to profit-taking, but the reality is that we got some hotter-than-expected inflation data, and markets are repricing the probability of rate cuts in the next couple of months. We must pay close attention as these slight pullbacks could easily lead to panic selling. We will be booking quicker profits and looking to take advantage of some downside pressure.

Check out this week’s ideas, and don’t forget to comment or ask questions below.