S&P 500: Lift Off (Breakout)

A Bullish Market In A Fear Environment

Markets, We Have Lift Off

The S&P 500 closed near record highs, the Nasdaq set a new all-time high, and Cathie Wood’s ARKK is entering its next stage of advance following the multi-year breakout that began in November. Here’s how the four key market barometers performed last week:

• S&P 500 +1.47%

• Nasdaq +2.90%

• Russell 2000 Flat at +0.01%

• Cathie Wood’s ARKK +6.79%

Throughout 2024, this newsletter has maintained the view that ARKK would be one of the best trade vehicles for capturing a market melt-up scenario. ARKK’s performance has now caught up to both the S&P 500 and Nasdaq from a 2024 starting point, and I continue to anticipate outperformance from Cathie’s flagship ETF.

To the active readers who considered accumulating a position using the strategy shared in August—congratulations on your patience and the returns to date (~45%)!

Next week marks the final week of the month, which means the last letter will feature updates on all active trade ideas and introduce the second trade idea for 2025. (Preview included in summary section)

A second congratulations goes out to readers who acted on the Alibaba and Tencent trade updates from last month—great timing before the recent advance! These ideas are now progressing toward their secondary trade targets.

With markets reopening on Tuesday, enjoy the extra time away from the screen!