12/2/2024
By Charles Payne CEO & Principal Analyst

Another great week.

It was another intense week for the stock market, powered more by emotions than fundamentals.

Eleven S&P 500 sectors finished higher weekly, with only Energy (XLE) lower. Consumer Discretionary (XLY) led the way with a 2.53% gain, helping to make up for Technology (XLK), which barely finished in the green.

Each week, investors look for new ideas and sectors to invest in, and last week, they focused on Health Care (XLV) and Real Estate (XLRE). The latter got a boost with falling bond yields. There is a sense of normality spreading now to bonds.

Lots of Bottom Fishing

Last week, investors went deep-diving and found potential pearls.

Ulta Beauty (ULTA) was the week's biggest gainer, but the shares are still 190 points, or 33%, below their 52-week high. Other disasters that caught bids include Enphase Energy (ENPH), Dollar Tree (DLTR), First Solar (FSLR), and DexCom (DXCM) – all were once unstoppable juggernauts to the upside.

Can they catch a flight again?  Right now, these stocks are trading more than investing ideas.

The Water Is Fine

Two weeks ago, I was lamenting the freefall of S&P 500 names changing hands above their 50-day moving average. After the initial post-election bounce, the number stumbled below the November 5^th level. But they have some roaring back – an excellent sign for the possibility of continued momentum.

The End of American Exceptionalism?

There are alarming issues that challenge American exceptionalism, including education, fertility, and a shift in family structure overall. We are the least healthy and die earlier than other advanced nations. But the next administration will fight to turn the tide in those areas. As for froreign policy and a trade war, the United States is positioned to win again.

To read the full report, contact your account representative, or email Info@wstreet.com

Charles Payne
Wall Street Strategies

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