Weekly Commentary - December 31, 2023

Happy New Year readers,

So the year 2023 has ended. A year which was expected by Perma bears right from the very beginning nothing but to face a recession, a doomed economy and all the rallies were treated as the so called "Bear Market Rallies". On the contrary, look at what major indices have delivered so far:

Index 1 Week 1 Month 1 Year

S&P 500 +0.32% +4.82% +24.2%

Nasdaq 100 +0.29% +5.24% +53.81%

Nasdaq Comp +0.12% +5.28% +43.4%

DJ Industrial +0.81% +6.38% +13.7%

Russell 2000 -0.34% +13.56% +15.09%

You could still hear same voices that the market is going to crash soon, sky is falling etc., but the fact of the matter is that we remain in a long-term bullish cycle which could last for years ahead. Obviously there are no guarantees and every now and then we would witness corrections, sometimes sharp drops which are normal in the overall bullish scenario as nothing goes straight up. In fact, Wall street is hinged on FED for a soft landing for the US economy, i.e., no recession predicted with several interest rates cuts expected in 2024. "Don't fight the Fed" as the common saying goes on Street will definitely have its implications on market performance going forward.

Last week was a slow one as most traders/investors were on yearly holidays. Nevertheless, we are in a bullish season and expect to see the current pattern continuing till the third week of January after which market could take a pause or pullback before consolidating and resuming its journey forward.

An important point to note is that the majority of the S&P 500 growth is concentrated in the Magnificent Seven i.e., Amazon, Apple, Alphabet, Meta, Microsoft, Nvidia and Tesla. These seven stocks have contributed over two third of the S&P 500 2023 return although they constitute only 30% of the total index market value. Although market breadth is improving lately as shown by the recent Russell 2000 ETF (IWM), the magnificent seven stocks are expected to lead the pack once again in 2024.

Performance of recently mentioned stocks:

Performance of some of the stocks mentioned during our recent commentaries is as follows. Please note that this time we have reviewed their performances for last 1 year:

Symbol 5 Days Perf 1 Month Perf 3 Month Perf 6 Month Perf 52 Week Perf

AAPL -1.10% 1.67% 12.45% 1.55% 48.55%

ABBV 1.56% 11.89% 3.96% 16.32% -4.67%

AMZN -1.24% 3.84% 19.52% 18.80% 80.49%

COST -0.76% 12.29% 16.84% 24.15% 44.59%

CVX -1.03% 3.65% -11.54% -4.53% -16.35%

DDOG -0.90% 4.05% 33.25% 25.85% 64.16%

DT -0.98% 2.36% 17.03% 7.26% 42.16%

GE 0.52% 7.38% 15.45% 18.46% 96.21%

GOOGL -0.52% 3.48% 6.75% 17.29% 57.93%

META -0.04% 6.55% 17.90% 25.73% 194.33%

MSFT 0.67% -0.74% 19.09% 12.23% 56.03%

NET -1.87% 6.32% 32.07% 29.93% 83.55%

NVDA 1.09% 2.87% 13.85% 21.31% 239.12%

NVO -0.03% 1.42% 13.76% 31.76% 53.03%

RAMP 1.39% 14.72% 31.35% 33.15% 60.24%

REVG -0.66% 17.15% 13.56% 36.31% 42.73%

ROST 1.85% 7.11% 22.52% 27.11% 19.45%

TNK -5.59% 1.90% 20.03% 36.08% 65.85%

TW -0.13% -4.35% 13.32% 33.37% 37.34%

As shown above, almost all the stocks mentioned during last 1 year have performed very well. In fact, both Nvidia and Meta have shown tremendous growth. Energy sector continues to lag the broader market but Chevron remains our favorite (see additional notes below).

Actionable Stocks:

GOOGL:

As mentioned last week, we expect the internet and communication giant to deliver a sound 2024 and is actionable at its current price levels. It is expected to beat Apple in growing revenues and is trying to catch up with Microsoft in AI space.

MSFT:

Microsoft continues to impress us with its AI-powered Copilot services expected to give further boost to its stock. It is still in a buyable range.

RAMP:

A bit riskier but RAMP has performed well during last week and a few months. We expect it to continue its growth trajectory in 2024.

Income Generators:

CVX: A long-term leader currently being offered at good prices. In our opinion, Market has shredded it recently on its Hess acquisition. Nevertheless, stock seems to be well positioned to resume its growth trajectory. A high dividend yield is a bonus.

ABBV: As mentioned last week, ABBV has recovered its lost ground and offers a competitive dividend with a long-term growth view.

Website:

Note: Our website is now up and running. Please review our offerings and if interested in our Excel based software, the TR (Trend Recognition) Indicator and the commentary then you could purchase it on:

https://analyzestocks.net

or visit our Etsy store at:

https://www.etsy.com/listing/1540978608/advanced-excel-stocks-analysis-and

All customers will continue to receive the Market commentary for a period of 1 year from the date of the purchase.

Also, kindly subscribe to our YouTube channel to obtain latest news and information about our products at

https://www.youtube.com/channel/UC8aS_P5xpWUDVG5IDdSjGEg

Happy Trading and best regards,

Disclaimer:

The information provided here is for educational / learning purposes only and should not be taken as purchase or sell recommendations. Trading / Investing in Stocks and derivatives is highly risky and could result in a substantial or complete loss of invested capital.

Employees and Owners of MJ Software LLC are not registered Financial Advisors with FINRA or SEC and for any financial advice please consult a registered financial advisor.