We’re wrapping up an incredible week in the stock market! The S&P 500 cash index—and its ETF counterpart, SPY—hit fresh all-time highs, with futures indices not far behind.
If you’ve been following the Sector Leader Bullseye newsletter closely these past few weeks, this probably doesn’t come as a surprise.
But let’s be honest—accurately predicting market moves is just a stepping stone. What really matters in this business isn’t saying, “I told you so,” but growing your account. And trust me, there are plenty of people who care more about being “right” than being profitable.
Fortunately, that’s not my style, and I’m guessing it’s not yours either. So let’s skip the patting ourselves on the back and focus on what’s next for the markets…
The Good Times Don’t Last Forever—But They Can Last a While
It’s easy to forget just how dramatic 2022 was for the markets. That bear market wasn’t just a blip—it was the longest pullback since the Global Financial Crisis of 2008-2009.
Believe it or not, the Nasdaq fell harder in 2022 than during the Covid crash of 2020. By any metric, 2022 was a real bear market.
I bring this up because I still hear people say we haven’t seen a bear market since 2008-2009. That’s simply not true. And if we’re only in the third year of a bull market now, there’s still plenty of room for upside.
Even better, we’re seeing all the right sectors leading this charge. Zooming out even further, I’m liking what’s unfolding with interest rates and energy as well. It feels like we’re heading into a “goldilocks” period where the impressive gains of the last two years could compound even further.
If you didn’t catch my recent article on semiconductors, I highly recommend checking it out. Semis are the missing piece of the puzzle, and it looks like the anticipated move is finally starting to take hold.
I’ll be back Monday with updated sector performance rankings (spoiler: they look great).
Talk soon,
Gianni
THEOTrade
