S&P 500: Santa Rally
Week 50 / 52
Week 2: Market Health Check
Trade Closed
In the third week of May, this newsletter introduced a trade idea for Victoria's Secret, with the stock trading around $22 at the time. The preferred accumulation zone was identified as the $18–$23 range. After five months, the trade reached its first target, and now, six months later, the share price has the second target in close proximity. For me, this is close enough to conclude the trade.
Overall a mostly clean trade over a six month duration.
The week 4 letter will provide updates to all active trade ideas.
Final Trading Weeks Of 2024
As we enter week 50, only two and a half trading weeks remain in 2024.
Last week, the S&P 500 gained nearly 1%, the Nasdaq up over 3% to close at new record highs. Meanwhile, the traditional small-cap barometer, the Russell 2000, dipped 1%. In sharp contrast, ARKK—Cathie Wood’s Innovation ETF and what I often refer to as the modern small-cap barometer—soared 8.5%.
In a year when mainstream media branded ARKK as a “wealth destroyer,” this newsletter highlighted a different perspective: its two-and-a-half-year-long consolidation period, which set the stage for its recent breakout.