The S&P 493 Are Winning Again

Don't miss Greg Diamond's latest take... The 'surprise' to prepare for... Does the election matter?... The Super Bowl of earnings is tomorrow... New market leadership already... What's going on below the surface... Boring and defensive stocks are winning... [Stansberry Research Logo] Delivering World-Class Financial Research Since 1999 [Stansberry Digest] Don't miss Greg Diamond's latest take... The 'surprise' to prepare for... Does the election matter?... The Super Bowl of earnings is tomorrow... New market leadership already... What's going on below the surface... Boring and defensive stocks are winning... --------------------------------------------------------------- In just a few hours... Our friend and colleague, Ten Stock Trader editor Greg Diamond, is debuting a new free presentation that you won't want to miss. As we've been explaining lately, Greg is expecting the next few months to be some of the more "volatile" we've seen in a while in the market. You and I (Corey McLaughlin) may have our reasons to believe the same – a weakening jobs market, an uncertain national political picture, or whatever it may be. But I can tell you that Greg doesn't necessarily care about the specific "trigger" if there is one (or two). Greg puts more stock in history, cycles, dates, and "time," as he describes it, in his brand of technical analysis. He believes strongly in the idea that history does tend to repeat itself, even if some of the details may differ. This kind of thing might sound like voodoo to you... Maybe the fundamentals and valuation of a company like Nvidia (NVDA) mean more to you when making investment decisions. Or maybe it's how the economy is doing... or what you see in your town or city... or whatever else. If you've been with us for a while, you likely have your own strategies that work for you. I'm not trying to tell you to go changing. I'm just here today to say that if you haven't heard about Greg's "technical analysis" strategy before, you ought to hear him out. Tonight, at 8 p.m. Eastern time, is a perfect opportunity – given what Greg is expecting over the next few weeks and months. A requirement for trading... As he wrote to his Ten Stock Trader subscribers earlier this week, the upcoming presidential election does matter... But a few things will likely matter more – to your portfolio, at least – in this same period (and anytime, really). [As Greg wrote](... Now, it's easy to let your emotions run wild... Many folks expect good or bad outcomes depending on their political party's wins or losses. But technical trading doesn't care about politics. As I often say, trading requires us to control our emotions and focus on our trading strategy... especially around big elections. For the past few weeks, I've been stressing that volatility will increase in both directions... starting this week. I won't predict what's going to happen (or not happen) in the political arena. Instead, I want to outline what I'm seeing based on the two major components of our technical strategy... time and price. Maybe you're not interested in putting your money directly into short-term trading and the brand of analysis Greg is known for, which he practiced on Wall Street before joining Stansberry Research. But we've also heard from plenty of folks who have used his analysis to help with their long-term investing approach. For instance, Greg nailed the market "top" and "bottom" in 2022... warned of a big turning point for stocks in early 2020... and helped guide subscribers through the uncertainties early in the pandemic. Now, he says that "volatility" is coming... [Tune in to his presentation to hear more](. One more note: Of course, Greg's existing subscribers and Stansberry Alliance members have access to all his research already, but you're also more than welcome to check out the presentation. It was another 'mixed' day today... The major U.S. indexes were split. The Dow Jones Industrial Average, which actually made a new all-time closing high yesterday in about the least impressive way possible with a tiny gain, was nearly flat. The benchmark S&P 500 Index finished 0.2% higher, the tech-heavy Nasdaq Composite Index was up 0.4%, while the small-cap Russell 2000 Index was almost 1% lower. The CBOE Volatility Index ("VIX") was around 16, close to its longer-term average. The Super Bowl of quarterly earnings reports... Another widely followed report will hit Wall Street after tomorrow's close. It's Nvidia's latest quarterly earnings. Investors will be looking for signs or confirmation of the pace of the company's growth, as in whether it's keeping up or slowing down. Last quarter, Nvidia's revenue was up 262% from a year earlier. The quarter before that, revenue was 265% higher than the same period a year prior. The company and Wall Street analysts all predict sales to, once again, more than double year over year. Will the AI darling beat those expectations, or will the results disappoint? We shall see. Nvidia is the last of the "Magnificent Seven" companies to report this quarter. The first six have made for a picture of "mixed" results, with Tesla (TSLA) missing Wall Street analysts' consensus earnings estimates and cutting its growth outlook. The others didn't produce too many surprises. However, Nvidia's results tomorrow could add to, or possibly subtract from, a recent trend in the market... As should come as no surprise to many readers after warnings we've made about these businesses' exorbitant valuations this year, the "magnificent" stocks have been – finally – underperforming the other S&P 493 lately. Look past the headliners... The S&P 493 are winning again... We can track the performance of the "Mag 7" using the Roundhill Magnificent Seven Fund (MAGS) that tracks Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL), Meta Platforms (META), Nvidia, and Tesla and equally weights them in an exchange-traded fund. Since July 10, MAGS is down around 10%. The S&P 500 is just about even, meaning the S&P 493 are outperforming the popular mega-cap tech stocks, which are heavily weighted and count for about 30% of the U.S. benchmark index. Another notable indicator of market behavior right now is that the equal-weight S&P 500 index just closed at a new all-time high as recently as two trading days ago. This could be a change in "leadership," or more signs of "rotation," a good sign in a bull market. We're also seeing this play out below the surface. As [I wrote early last week]( certain "defensive" or "boring" sectors, like health care and consumer staples, were already trading at new all-time highs. This continues to be the case a week later. (Side note: Is it funny that the idea of "price gouging" legislation or regulation – suggested by the Democratic nominee for president, Kamala Harris – hasn't hurt the consumer staples sector of the S&P 500, of which food and grocery companies are a part, at all?) The Consumer Staples Select Sector SPDR Fund (XLP) is up 5% in a month, also outperforming the Magnificent Seven. Here's another 'boring' recent winner... Our colleague and DailyWealth Trader editor Chris Igou [wrote an analysis today]( of the Materials Select Sector SPDR Fund (XLB), which tracks this major S&P 500 sector. The materials sector includes companies that "do everything from making the chemicals in paint to getting copper out of the ground," as Chris put it. "If we use the material to run society, you will likely find some trace of it in this fund." Lately, as Chris sees it, XLB has traded above a key level of "resistance" (a price that proved to be a cap previously). As he explained to subscribers today... In 2021 and 2022, XLB hit a ceiling around $90 a share. It tried to break out above that level four times over the course of a year. Then, that resistance led to lower prices in XLB into late 2022. XLB has since made up all the ground it lost over that span. And where it found "resistance" at the $90 level back then, it's finding "support" today. In the chart below, you can see XLB punching through that $90 barrier in early 2024. And anytime it dropped to or slightly below that level, it turned higher... This change from resistance to support is a great sign that XLB is done trading in that sideways range. It's easy to see why investors might be wary of buying in now. XLB is up 43% since it bottomed in 2022. That's a massive run in roughly two years. But just because the sector is up doesn't mean the rally has to end. Chris then shared history of prior action like this and how it portended more gains. We can't share all those details here out of fairness to his paying subscribers, but Alliance members and DailyWealth Trader subscribers can find everything [here](. As for the 'why' about all this... As I mentioned to start, technical traders don't necessarily need a reason for price action. They see it for what it is... And I don't speak for our editors and analysts, as much as I might seem like it since I'm writing to you here every day. Be sure to follow our team for all of their views, our flagship Stansberry's Investment Advisory for starters, and our Portfolio Solutions products if you're wondering about how to piece it all together. Me? I personally enjoy marrying observations, trends, history, and a macroeconomic outlook with ongoing price action... Here's my take: It's no secret that the "Mag 7" have been on an incredible run since October 2022, which was the start of the current bull market. Now, it seems the "rest" – many of which haven't done all that great in the past few years – are catching up and outperforming. Does that mean all is well with the economy? I'm not so sure, but Mr. Market doesn't care what I think. We may have concerns, but it is interesting that an apparent changing "leadership" in the U.S. stock market is coinciding with expectations of lower interest rates ahead and into 2025. The Federal Reserve's "juice" may be working already. But as I cautioned yesterday, that also doesn't mean the catalyst will last forever, especially if the economy sees "unexpected weakening" in the months ahead. No matter what: Own shares of high-quality companies and other inflation hedges. In this week's Stansberry Investor Hour, our colleague, Ten Stock Trader editor Greg Diamond, joins Dan Ferris and me to talk some about the "surprise" that could be coming to the market this election season – and why he's thrilled about the possibility... [Click here to watch the interview now](... And to hear the full audio version of this week's Stansberry Investor Hour, visit [InvestorHour.com]( or find the show wherever you listen to your podcasts. And don't forget about Greg's new free presentation, which starts at 8 p.m. Eastern time tonight. [Click here to register]( so you don't miss a minute. --------------------------------------------------------------- Recommended Links: [TONIGHT at 8 p.m. Eastern Time: Our Harris-Trump Prediction Goes Live]( Tonight, the man who called the 2020 and 2022 crashes explains why a surprising upcoming twist to the Harris-Trump election could double your money 10 different times – as he showed during the 2020 election year. Tonight, we're going live with his terrifying blueprint of exactly where stocks could go next and why it could be "lights out" for one of the candidates. [Click here to learn more](. --------------------------------------------------------------- [Read This BEFORE Nvidia's Earnings Tomorrow...]( Nvidia's stock is up 30% in anticipation of its earnings report tomorrow. But there's ONE thing CEO Jensen Huang likely won't mention. It has to do with three under-the-radar companies with exposure to Nvidia's new Blackwell chip technology... whose stock could skyrocket in the months ahead. [See this before tomorrow's earnings report](. --------------------------------------------------------------- New 52-week highs (as of 8/26/24): Automatic Data Processing (ADP), Altius Minerals (ALS.TO), Berkshire Hathaway (BRK-B), CBOE Global Markets (CBOE), Colgate-Palmolive (CL), Compass (COMP), Costco Wholesale (COST), Cintas (CTAS), Fidelity National Financial (FNF), SPDR Gold Shares (GLD), Intercontinental Exchange (ICE), Nuveen Preferred & Income Opportunities Fund (JPC), JPMorgan Chase (JPM), Kellanova (K), Coca-Cola (KO), Medtronic (MDT), MainStay CBRE Global Infrastructure Megatrends Term Fund (MEGI), Altria (MO), Newmont (NEM), Northrop Grumman (NOC), Novartis (NVS), Omega Healthcare Investors (OHI), Pembina Pipeline (PBA), Invesco High Yield Equity Dividend Achievers Fund (PEY), Sprott Physical Gold Trust (PHYS), Planet Fitness (PLNT), PayPal (PYPL), Regeneron Pharmaceuticals (REGN), Royal Gold (RGLD), Construction Partners (ROAD), Sprouts Farmers Market (SFM), Sherwin-Williams (SHW), S&P Global (SPGI), SPDR Portfolio S&P 500 Value Fund (SPYV), Torex Gold Resources (TORXF), Texas Pacific Land (TPL), ProShares Ultra Gold (UGL), ProShares Ultra Financials (UYG), Viper Energy (VNOM), Vanguard Short-Term Inflation-Protected Securities (VTIP), Wheaton Precious Metals (WPM), Consumer Staples Select Sector SPDR Fund (XLP), and Utilities Select Sector SPDR Fund (XLU). In today's mailbag, another thought on the Federal Reserve, which we discussed [yesterday](... and more about... Scooby-Doo? Well, and the Fed and economic data, in a way... Do you have a comment or question? As always, e-mail us at feedback@stansberryresearch.com. "Many pundits portray the Federal Reserve board members as good-intentioned folks that just somehow get their policy wrong, or they are inadvertently late on decision-making. But what if we are the ones getting it wrong? Do we mistakenly project our values upon them? "We assume that the Board and its staff are there for the best interests of the American people because that is what we want to believe. [But] wargame their past decisions as if they are the adversary and their objective is to benefit a small group of entities (select banks, corporations, private equity firms, hedge funds, etc.) while placating to the masses just enough to keep them docile then the rules to their game become a bit clearer. "'The financial markets are SO complex and fragile that the sheep need us 'experts' to steer this ship through the constant storm!" Well, thank goodness for us (the sheep) that we are blessed to have these 'experts' keep us safe! (Yes, that is meant to be read with heavy sarcasm)..." – Subscriber J.W. Corey McLaughlin comment: Short answer to your second question: Yes. At least I am guilty of this, probably too much. More to come on this subject soon. "Likewise Corey, I thought you were referencing Scooby-Doo in your article. I thought it was very insightful and funny, but there might be a minimum age to understand what you were saying. It was hilarious." – Subscriber Dennis M. McLaughlin comment: Ha, thanks. But let me be clear on one thing: I was referring to Scooby-Doo with the "ruh-roh" reaction, as in "uh-oh" about bad economic data. However, we were not – at least intentionally – thinking of the Fed or government as "a group of Scooby-Doo's," as Larry N. put it in yesterday's mailbag. (That's not to say it isn't true, though...) "Re Larry N.'s comment, does that mean the members of the Fed will be happy if we feed them all Scooby Snacks?" – Subscriber Sherwin R. McLaughlin comment: You guys are great. Thank you. My editors might be counting the Scooby-Doo references now, though. Editor comment: Zoinks! All the best, Corey McLaughlin Baltimore, Maryland August 27, 2024 --------------------------------------------------------------- Stansberry Research Top 10 Open Recommendations Top 10 highest-returning open stock positions across all Stansberry Research portfolios. Returns represent the total return from the initial recommendation. Investment Buy Date Return Publication Analyst MSFT Microsoft 11/11/10 1,362.1% Retirement Millionaire Doc MSFT Microsoft 02/10/12 1,318.2% Stansberry's Investment Advisory Porter ADP Automatic Data Processing 10/09/08 980.4% Extreme Value Ferris WRB W.R. Berkley 03/16/12 805.5% Stansberry's Investment Advisory Porter BRK.B Berkshire Hathaway 04/01/09 705.8% Retirement Millionaire Doc HSY Hershey 12/07/07 488.9% Stansberry's Investment Advisory Porter TT Trane Technologies 04/12/18 459.8% Retirement Millionaire Doc AFG American Financial 10/12/12 458.3% Stansberry's Investment Advisory Porter NVO Novo Nordisk 12/05/19 390.5% Stansberry's Investment Advisory Gula TTD The Trade Desk 10/17/19 390.2% Stansberry Innovations Report Engel Please note: Securities appearing in the Top 10 are not necessarily recommended buys at current prices. The list reflects the best-performing positions currently in the model portfolio of any Stansberry Research publication. The buy date reflects when the editor recommended the investment in the listed publication, and the return shows its performance since that date. To learn if a security is still a recommended buy today, you must be a subscriber to that publication and refer to the most recent portfolio. --------------------------------------------------------------- Top 10 Totals 5 Stansberry's Investment Advisory Porter/Gula 3 Retirement Millionaire Doc 1 Extreme Value Ferris 1 Stansberry Innovations Report Engel --------------------------------------------------------------- Top 5 Crypto Capital Open Recommendations Top 5 highest-returning open positions in the Crypto Capital model portfolio Investment Buy Date Return Publication Analyst wstETH Wrapped Staked Ethereum 12/07/18 2,291.8% Crypto Capital Wade BTC/USD Bitcoin 11/27/18 1,574.2% Crypto Capital Wade ONE/USD Harmony 12/16/19 1,138.0% Crypto Capital Wade MATIC/USD Polygon 02/25/21 754.4% Crypto Capital Wade OPN OPEN Ticketing Ecosystem 02/21/23 279.3% Crypto Capital Wade Please note: Securities appearing in the Top 5 are not necessarily recommended buys at current prices. The list reflects the best-performing positions currently in the Crypto Capital model portfolio. The buy date reflects when the recommendation was made, and the return shows its performance since that date. To learn if it's still a recommended buy today, you must be a subscriber and refer to the most recent portfolio. --------------------------------------------------------------- Stansberry Research Hall of Fame Top 10 all-time, highest-returning closed positions across all Stansberry portfolios Investment Symbol Duration Gain Publication Analyst Nvidia^* NVDA 5.96 years 1,466% Venture Tech. Lashmet Microsoft^ MSFT 12.74 years 1,185% Retirement Millionaire Doc Inovio Pharma.^ INO 1.01 years 1,139% Venture Tech. Lashmet Seabridge Gold^ SA 4.20 years 995% Sjug Conf. Sjuggerud Nvidia^* NVDA 4.12 years 777% Venture Tech. Lashmet Intellia Therapeutics NTLA 1.95 years 775% Amer. Moonshots Root Rite Aid 8.5% bond 4.97 years 773% True Income Williams PNC Warrants PNC-WS 6.16 years 706% True Wealth Systems Sjuggerud Maxar Technologies^ MAXR 1.90 years 691% Venture Tech. Lashmet Silvergate Capital SI 1.95 years 681% Amer. Moonshots Root ^ These gains occurred with a partial position in the respective stocks. * The two partial positions in Nvidia were part of a single recommendation. Editor Dave Lashmet closed the first leg of the position in November 2016 for a gain of about 108%. Then, he closed the second leg in July 2020 for a 777% return. And finally, in May 2022, he booked a 1,466% return on the final leg. Subscribers who followed his advice on Nvidia could've recorded a total weighted average gain of more than 600%. --------------------------------------------------------------- Stansberry Research Crypto Hall of Fame Top 5 highest-returning closed positions in the Crypto Capital model portfolio Investment Symbol Duration Gain Publication Analyst Band Protocol BAND/USD 0.31 years 1,169% Crypto Capital Wade Terra LUNA/USD 0.41 years 1,166% Crypto Capital Wade Polymesh POLYX/USD 3.84 years 1,157% Crypto Capital Wade Frontier FRONT/USD 0.09 years 979% Crypto Capital Wade Binance Coin BNB/USD 1.78 years 963% Crypto Capital Wade You have received this e-mail as part of your subscription to Stansberry Digest. If you no longer want to receive e-mails from Stansberry Digest [click here](. Published by Stansberry Research. You’re receiving this e-mail at {EMAIL}. Stansberry Research welcomes comments or suggestions at feedback@stansberryresearch.com. This address is for feedback only. 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