Market Could Take Normal, Routine Pause After Record Highs, Strategist Says: 'Now's The Time If You Have Profits To Book Them'
Portfolio Pulse from Chris Katje
A leading market strategist suggests that the market could take a routine pause after record highs, with key events like the rebalancing of the Technology Select Sector SPDR Fund (XLK) and the reconstitution of the Russell 2000 coming up. Nvidia (NVDA) recently surpassed Apple (AAPL) and Microsoft (MSFT) in market value, but investors might look to book profits. Financials and homebuilder stocks are highlighted as potential opportunities.
June 21, 2024 | 7:57 pm
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POSITIVE IMPACT
The iShares Russell 2000 ETF could see positive movement as the Russell 2000 index plays catch up in the second half of 2024.
The Russell 2000 index has underperformed but could see a catch-up rally, benefiting IWM in the second half of 2024.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 70
POSITIVE IMPACT
JPMorgan Chase will report quarterly financials on July 12, kicking off the financial sector's earnings season.
JPMorgan's earnings report will be closely watched and could set the tone for the financial sector, potentially leading to positive price movement.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 70
POSITIVE IMPACT
The SPDR S&P Homebuilders ETF is highlighted as a potential opportunity with mortgage rates going under 7%.
Lower mortgage rates could boost the homebuilding sector, making XHB a potential opportunity for investors.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 60
POSITIVE IMPACT
The Financial Select Sector SPDR Fund is highlighted as a potential opportunity with the upcoming financial sector earnings season.
With the financial sector's earnings season approaching, XLF could see positive movement as investors look for opportunities.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 60
NEUTRAL IMPACT
Apple was recently surpassed by Nvidia in market value, which could lead to portfolio rebalancing by investors.
Apple's position in market value has been affected by Nvidia's rise, which could lead to portfolio adjustments but not necessarily a significant price impact.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
Microsoft was recently surpassed by Nvidia in market value, which could lead to portfolio rebalancing by investors.
Microsoft's position in market value has been affected by Nvidia's rise, which could lead to portfolio adjustments but not necessarily a significant price impact.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
The Technology Select Sector SPDR Fund will see Nvidia as a larger holding, which could lead to portfolio rebalancing.
The rebalancing of XLK to include a larger holding of Nvidia could lead to portfolio adjustments but not necessarily a significant price impact.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Nvidia recently surpassed Apple and Microsoft to become the most valuable company, but investors might look to book profits after a 200% gain in the last year.
Nvidia's significant gain and recent market value peak suggest a potential pullback as investors may look to book profits.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100