Our August 2024 stock and ETF watchlist with entry points, sector analysis, and market outlook.
Market Overview
Welcome back to The Wealth Catchers' watchlist. The month of July started off strong for investors only for us to stumble across the finish line. All the indices ended in the green except for the NASDAQ. We witnessed a pretty volatile rotation out of tech as we saw the Russell 2000 (small caps) rally 11%. The money didn't only flow to small caps. Investors and institutions flooded into the real estate, utilities, and financial sectors, taking advantage of a part of the market that has been overlooked. I have mentioned sector rotation in the past watchlists: January 2023, January 2024, April 2024 . Keep in mind that sector rotation isn't a bad thing. The market can only stay concentrated for so long and at some point will need to broaden out and those names or sectors that were running will end up running out of steam. Use this as an opportunity to add to those names or sectors. For example, we saw Nvidia fall from $140 to $105 in the month of July, that's a buying opportunity.
Crypto & Digital Assets
As I stated at the top of the year we are in an election year and saw something major happen in this presidential election. The fact the Joe Biden has stepped out of this race to make way for his Vice President, Kamala Harris, to take the helm came as a surprise to some but was definitely something people were calling for. In my opinion it doesn't really matter who is in office when it comes to the stock market, position yourself to take advantage of opportunities. This change should make for a much more interesting race as we get to see where she stands on certain issues. Now just because I say it doesn't matter who's in office doesn't mean their actions or words can't have impact. We saw that with the Biden administration and Trump making comments about some heavy players in the semiconductor industry. When topics like this are broached that's when investors should pay close attention due to the uncertainty it may bring to the market. Now onto the next topic, one of the beloved names on our watchlist was at center of a global IT shortage. Crowdstrike had a failed update that affected practically all levels of the professional world on a global level. Airports, hospitals, banks and much more were essentially unable to operate until this issue was resolved. Seeing this play out live instantly made me think of the movie "Leave The World Behind". All I can say is, prepare for the unexpected. We want to be in position for the market but you also want to be in the right position for your day to day life
Monthly Performance
At the close of the month, here are how the indices performed:Dow Jones (4.27%)S&P 500 (0.86%)NASDAQ (-1.57%)Russell 2000 (11.05%)At the close of the month, the VIX was at 16.36. At the close of the month, the "Fear and Greed" index was at 52, indicating neutrality in the market.
Closing Note
I appreciate you checking in, and here's your friendly reminder:
“The time to buy is when there's blood in the streets.”
Keep on buying assets; there's always a bull or bear market somewhere. Keep your money working.
Index Performance
| Index | Performance |
|---|---|
| Dow Jones (Jul 2024) | +4.27% |
| S&P 500 (Jul 2024) | +0.86% |
| NASDAQ (Jul 2024) | -1.57% |
| Russell 2000 (Jul 2024) | +11.05% |
Top Sectors
Bottom Sectors
Stock Entry Points
| Ticker | Daily Entry | Weekly Entry |
|---|---|---|
| ABNB | $144 | $115–$130 |
| MSFT | $387–$427 | $277–$335 |
| AAPL | $187–$193 | $143–$174 |
| GOOGL | $149–$168 | $113–$129 |
| WMT | $58–$65 | $49–$54 |
| TSLA | $189–$215 | $197–$209 |
| V | $261–$274 | $221–$242 |
| PG | $157–$164 | $143–$152 |
| WM | $187–$210 | $150–$176 |
| IIPR | $94–$107 | $92–$138 |
| SHOP | $58–$70 | $60–$81 |
| ADBE | $507–$547 | $460–$484 |
| AMZN | $161–$185 | $137–$146 |
| CRWD | $219–$332 | $179–$206 |
| NVDA | $73–$104 | $30–$51 |
| COST | $678–$788 | $465–$589 |
| JPM | $174–$199 | $141–$156 |
| NEE | $65–$70 | $64–$76 |
| LLY | $686–$813 | $338–$542 |
| TMO | $540–$572 | $499–$543 |
| ADP | $243–$246 | $207–$237 |
| SHW | $296–$317 | $253–$269 |
| META | $405–$490 | $274–$304 |
| RTX | $91–$103 | $86–$94 |
| CMG | $50–$60 | $33–$43 |
| WING | $287–$380 | $168–$232 |
| DKNG | $37–$42 | $29–$34 |
ETF Entry Points
| Ticker | Daily Entry | Weekly Entry |
|---|---|---|
| VUG | $321–$355 | $260–$285 |
| VGT | $492–$542 | $377–$434 |
| VOO | $448–$487 | $374–$413 |
| SMH | $195–$239 | $128–$161 |
Key Takeaways
- →July 2024: Historic sector rotation — Russell +11.05% as small-caps surged.
- →CrowdStrike global IT outage on July 19 caused broad tech selloff; CRWD dropped sharply.
- →NASDAQ declined -1.57% as investors rotated into financials, real estate, utilities.
- →Fed September rate cut probability increased significantly after cooling inflation data.
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