Our February 2024 stock and ETF watchlist with entry points, sector analysis, and market outlook.
Market Overview
Welcome back to The Wealth Catchers' watchlist. January proved to be a positive month for the market. All indices were in the green except the Russell 2000. Plenty of companies and ETFs on the watchlist hit all-time highs13, to be exact. This continued upward momentum slowed a bit after Jerome Powell spoke and made it clear that interest rates would still remain where they are. This was expected, but now the outlook for how many cuts we will receive this year has lessened. According to the FedWatch Tool, there is a 20% chance that the Fed will cut rates in March. That probability more than doubles for May, revealing a 54% chance that there will be a rate cut. For investors, this still pushes the "higher for longer" theme. The Fed still wants to see enough information that inflation is on the path to that 2% target. With January proving to be a positive month, this adds more fuel to the fire that, overall, this year will be a positive one for the market. With it being an election year, data shows that on average, the market goes up 11.28% (from 19262016). Also, to add more to this prediction, we can look at what's called the "January Barometer". This technical indicator has had about 75% accuracy since 1945. With this indicator, it's wildly simple. If January was positive for the market, then the overall year will be too. And the opposite applies as well. Negative January, negative year. Keep in mind that indicators are simply there to assist us in making an educated guess. It can still not go in your favor, no matter how many indicators you look at. Use any and all indicators as a guide, not something to put all your eggs into. Always remember to invest for the long term, trust your research, and take advantage of opportunities
Monthly Performance
At the close of the month, here are how the indices performed:Dow Jones (1.15%)S&P 500 (2.17%)NASDAQ (2.70%)Russell 2000 (-3.25%)At the close of the month, the VIX was at 14.35. At the close of the month, the "Fear and Greed" index was at 65, indicating greed 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 (Jan 2024) | +1.15% |
| S&P 500 (Jan 2024) | +2.17% |
| NASDAQ (Jan 2024) | +2.70% |
| Russell 2000 (Jan 2024) | -3.25% |
| VIX | 14.35 |
Top Sectors
Bottom Sectors
Stock Entry Points
| Ticker | Daily Entry | Weekly Entry |
|---|---|---|
| NKE | $99–$111 | $90–$116 |
| ABNB | $128–$134 | $87–$123 |
| MSFT | $326–$358 | $274–$296 |
| AAPL | $177–$185 | $147–$165 |
| GOOGL | $123–$137 | $102–$117 |
| MCD | $263–$284 | $238–$270 |
| WMT | $155–$161 | $137–$147 |
| TSLA | $153–$224 | $93–$232 |
| SBUX | $90–$100 | $83–$97 |
| V | $239–$250 | $210–$224 |
| PG | $142–$151 | $138–$148 |
| WM | $165–$170 | $140–$163 |
| IIPR | $80–$85 | $68–$87 |
| SHOP | $60–$67 | $51–$83 |
| ADBE | $484–$574 | $437–$472 |
| AMZN | $126–$143 | $131–$141 |
| CRWD | $170–$218 | $169–$177 |
| NVDA | $395–$480 | $193–$294 |
| COST | $538–$594 | $409–$518 |
| JPM | $147–$155 | $132–$137 |
| NEE | $59–$70 | $48–$71 |
| LLY | $487–$591 | $267–$413 |
| TMO | $465–$529 | $469–$540 |
| ADP | $230–$236 | $198–$231 |
| SHW | $257–$275 | $237–$254 |
| META | $280–$332 | $243–$257 |
| RTX | $77–$92 | $66–$85 |
ETF Entry Points
| Ticker | Daily Entry | Weekly Entry |
|---|---|---|
| VUG | $274–$294 | $240–$258 |
| VGT | $421–$451 | $343–$389 |
| VOO | $399–$415 | $352–$385 |
| SMH | $146–$160 | $109–$131 |
Key Takeaways
- →January 2024: S&P +2.17% as tech and communication services led gains.
- →Small-caps (Russell -3.25%) underperformed as rate expectations stayed elevated.
- →TSLA gapped down sharply — RSI reached oversold territory, creating a potential entry.
- →NVDA, CRWD, COST showed overbought RSI — pullback entries may develop.
- →10% correction targets: Dow 34,729, S&P 4,437, NASDAQ 14,508.
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