'Extreme Buying' Sends Over 60% Of S&P 500 Stocks To 20-Day Highs
Portfolio Pulse from Surbhi Jain
The U.S. stock market has experienced a surge in buying activity, with over 60% of S&P 500 stocks reaching their 20-day high. The SPDR S&P 500 ETF Trust (SPY), iShares Core S&P 500 ETF (IVV), and Vanguard 500 Index Fund ETF (VOO) have seen over 9% gains since October 31. Leveraged ETFs like Direxion Daily S&P 500 Bull 3X Shares (SPXL) and ProShares UltraPro S&P 500 (UPRO) have seen nearly 28% returns in the same period. Positive macroeconomic factors and solid earnings reports have contributed to this growth. Historical data suggests that 'extreme buying' events, where more than 60% of S&P 500 stocks hit a 20-day high, lead to an average 18% return over the following 12 months, indicating positive expectations for 2024.
December 05, 2023 | 7:24 pm
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POSITIVE IMPACT
iShares Core S&P 500 ETF (IVV) has seen a similar increase of over 9% since October 31, in line with the S&P 500's performance.
IVV's performance is closely tied to the S&P 500, and the current market upswing, supported by strong earnings and macroeconomic factors, suggests a positive short-term outlook for the ETF.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Direxion Daily S&P 500 Bull 3X Shares (SPXL) has nearly tripled the S&P 500's gains, with close to 28% returns since October 31.
As a leveraged ETF, SPXL's returns are magnified compared to the S&P 500. The strong market performance and 'extreme buying' events suggest continued upside potential in the short term.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 80
POSITIVE IMPACT
SPDR S&P 500 ETF Trust (SPY) has gained over 9% since October 31, benefiting from the overall market rally and positive investor sentiment.
SPY, which tracks the S&P 500, is directly impacted by the performance of the index. The positive market conditions and historical data suggesting further growth are likely to continue supporting its price in the short term.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
ProShares UltraPro S&P 500 (UPRO) has delivered close to 28% in price returns since October 31, benefiting from the leveraged exposure to the S&P 500.
UPRO, as a leveraged ETF, is designed to amplify the S&P 500's performance. The current market rally and historical patterns of 'extreme buying' events point to a positive short-term impact on UPRO's price.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 80
POSITIVE IMPACT
Vanguard 500 Index Fund ETF (VOO) has also participated in the rally with over 9% gains since the end of October.
VOO tracks the S&P 500 and its performance is directly influenced by the index's gains. The current bullish sentiment and positive earnings reports are likely to benefit VOO in the short term.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90