Another Bullish Omen is Flaring for the NASDAQ
The crowd-stunning rally keeps going.
Don’t be shocked if growth stocks keep working.
Another bullish omen is flaring for the NASDAQ.
Equities remain in a firm uptrend. Small, Mid, and growthier pockets of the market are under healthy accumulation.
Our bias towards owning SMID caps is still in place. Afterall, plenty of capital has been reappraising those names since the Summer.
That said, there are other single stock stories working, too.
NASDAQ bellwethers Tesla (TSLA) and Alphabet’s (GOOGL) have been sharply rallying as Musk plants himself further in the government and Google’s quantum computer Willow unleashes mind-numbing calculations. (Disclosure: I own GOOGL and TSLA shares)
These 2 heavyweights have helped push the NASDAQ to record heights. The good news is the latest strength actually favors more gains ahead for the tech-heavy index.
Let’s now unpack the evidence.
Another Bullish Omen is Flaring for the NASDAQ
Sometimes you need to look backwards to see the future. Back in October, we made the case for why the NASDAQ could see a strong back-half of 2024.
Inside that piece, we noted extreme ETF liquidations coupled with strong Septembers, tend to spell healthy gains for the rest of the year.
Thus far, it’s been the right call with the NASDAQ 100 up 29.3% YTD:
Now, you may feel inclined to lock in some profits after such a brisk up-move. However, one signal suggests the tech-heavy NASDAQ can keep climbing well into 2025.
With November in the books, we know that NDX climbed 4.48%. Turns out, that’s a pretty hefty gain considering the average November return back to 1995 is 2.88%.
This is no surprise given we are in the early innings of a powerful bullish period for markets kicking off in November and ending in April.
Note how all major indices average chunky gains in this 6-month period with the NASDAQ averaging a 9% ramp:
Make it a habit to say these 5 words: Remember to buy in November!
But 2024 isn’t an ordinary November given the NASDAQ just rallied 4.48% in the 11th month. Here’s why this is a bullish omen.
Since 1995, whenever the NASDAQ 100 gains 4% or more in November, the following Q1 posts an average gain of 4.62%.
Compared to an average 3.13% return for Q1 in the same time period, that represents a 47% outperformance:
This positive outlook reflects the unique inflows in our data.
Beginning in November, over 1/5th (21%) of all inflows have been in technology stocks. Clearly, large money managers see opportunities in this space.
This is why it’s mission critical to know the individual stocks that are leading the market with strong fundamentals and big tailwinds.
You can make monster-sized gains in under-the-radar small and mid-caps…and clearly NASDAQ stocks too.
A 4.62% potential gain in Q1 for tech stocks is nice, but in a raging bull market you can do a lot better choosing all-star companies.
Just make sure you’re using a map to find them!
Let’s wrap up.
Here’s the bottom line: The equity rally continues to stun the crowd. The NASDAQ just put up a market-beating return in November.
This spells further market gains in Q1. Turns out, the average January – March return for the NASDAQ is 4.62% whenever the prior November gains 4%+…just what we saw in 2024.
Keep leaning long in your portfolio.
But also focus on the exact companies under heavy institutional sponsorship. That’s how you’ll beat the indices…and make it a November to remember!
If you’re a serious investor, RIA, or money manager, get started with a MAP PRO subscription and find tomorrow’s top stocks…Today.
Lastly, join me at the Wealth365 Summit, January 13th-18th, as I present: How to Spot Big Winning Stocks in 2025
You won’t want to miss it.
