July 2024 barometer update
The US market has been dominated by “pure-play” AI stocks such as NVidia. However the UK market has seen an uptick in the quantity of mergers and acquisitions. In spite of this the FTSE 100 has been largely flat during the month. The Sector Rotation Clock has remained at Mid Expansion in the cycle.
Here is the clock but there has been no change to the bullish and bearish super-sectors:
To summarise the indicators:
The Barometer has reduced slightly to +2.
The Hi-Lo-Grometer has dropped into the amber zone. It is not safe to buy stocks.
The US Treasury Yield indicator has remained inverted but has fallen towards the -120 points zone. This is still an anomalous reading as far as I am concerned.
There is increasing bullish sentiment in the markets at the moment but there is still a lot of money remaining on the sidelines. If those investors can be persuaded to invest, we should see a push up in the markets.
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