Mosaic Chart Alerts

S&P 500: Can the bulls sustain the momentum?

In this post, I’ll focus on setups that I’m monitoring for both long and short positions. With a chart and short write-up, this is a quick way to scan and plan potential trades.

These ideas are the end result of my process to identify stocks offering the right combination of growth fundamentals along with a proper chart setup.

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I believe the next major bull market phase is underway. Our open positions include high growth stocks, a play on Bitcoin, and other cyclical sectors already breaking out.

Come and join us at the Hub as we ride the bull trend!

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Stock Market Update

A mixed batch of economic data sets up a highly anticipated November payrolls report this Friday. Current estimates are for a strong rebound to 215,000 new jobs for the month, which follows the disappointing 12,000 figure in October. Much of the October weakness was blamed on the impact of hurricanes in the South and a strike at Boeing.

This week has already seen mixed reports on manufacturing and service sector activity. The Manufacturing ISM rebounded to 48.4 during the month, where a reading above 50 indicates expansion and below 50 points to contracting activity. While the headline figure remains below 50, the new orders component jumped to 50.4. That’s the highest level on new orders since March, and are considered a leading indicator of activity. Meanwhile, the Services ISM fell to 52.1 from 56 in the prior month. Despite the drop, service sector activity has remained in expansionary territory for 51 of the past 54 months (chart below).

As incoming economic data shapes views on the outlook for monetary policy, there are concerns that investors are becoming too excited about the prospects for the stock market. Inflows into equities are setting records recently, while asset manager positioning is running at the most invested level in five years. While that’s drawing skepticism around the bull market, it’s worth noting that this rally is still truncated from the historic standpoint of gain and duration. You can see in the table below that bull markets since 1950 produce a median gain of 91% over 978 days, versus the current bull that has gained 69% in 535 days.

Chart from Grant Hawkridge on X

Investor sentiment tends to work best at the extremes. But on the bullish side of the equation, sentiment can stay at elevated levels for prolonged periods. In my weekend report, I outlined three factors that can see the market keep rallying over the near-term which should set up a constructive trading environment.

Keep reading below to see:

• Open ETF positions

• Open stock positions

• Chart analysis for new trade ideas