Our July 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 June has been a green one for investors across the broad market. All the major indices closed the month in positive territory, while the S&P 500 and Nasdaq hit new all-time highs. The bull market continues to be a ferocious one for us but it does bring in some concern that sounds very familiar. Remember when the Mag 7 was on a tear and there was a consensus that there was too much concentration on these names for the market? Well the same thing is happening again but with only Nvidia. The concern for this lack of market breadth has been rising, especially since we witnessed Nvidia become the most valuable company in the world. And we also saw the XLK (ETF) get rebalanced, placing Nvidia as its largest allocation. It seems for now that the market moves when Nvidia moves Now with this "lack of breadth" in the market, this is a great time to go in search of those quality names that may be underperforming: Home Depot, Lowes, PSA, Mastercard, and Chevron, to name a few. During times like this, you could be collecting some profit, letting your winners ride, or searching for opportunities to build positions.
Fed & Monetary Policy
A Fed rate cut is still on the table. According to the FedWatch Tool, we have 56% probability that we will receive a cut in September. I feel like the sooner this happens, the better it will be for the market, it'll be one less thing for investors to worry about. The longer we take to start cutting will only raise more worry about the stickiness of inflation. Keep in mind that the Fed wants to see the data first and then react to it. For the watchlist, I took off some long-term stocks that have been with us since the beginning: Starbucks, McDonald's, and Nike. At the end of the watchlist, I share my thoughts on why I removed these companies and also reveal the new additions
Monthly Performance
At the close of the month, here are how the indices performed:Dow Jones (1.76%)S&P 500 (3.67%)NASDAQ (4.80%)Russell 2000 (0.56%)At the close of the month, the VIX was at 12.44. At the close of the month, the "Fear and Greed" index was at 44, indicating fear 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 (Jun 2024) | +1.76% |
| S&P 500 (Jun 2024) | +3.67% |
| NASDAQ (Jun 2024) | +4.80% |
| Russell 2000 (Jun 2024) | +0.56% |
Top Sectors
Bottom Sectors
Stock Entry Points
| Ticker | Daily Entry | Weekly Entry |
|---|---|---|
| ABNB | $143–$155 | $128–$137 |
| MSFT | $378–$420 | $271–$327 |
| AAPL | $183–$185 | $140–$171 |
| GOOGL | $144–$159 | $110–$125 |
| WMT | $57–$62 | $48–$53 |
| TSLA | $175–$217 | $193–$231 |
| V | $259–$277 | $219–$239 |
| PG | $156–$163 | $142–$151 |
| WM | $184–$207 | $148–$174 |
| IIPR | $91–$102 | $87–$138 |
| SHOP | $65–$71 | $56–$81 |
| ADBE | $484–$544 | $455–$482 |
| AMZN | $156–$181 | $134–$145 |
| CRWD | $250–$329 | $174–$199 |
| NVDA | $66–$95 | $27–$46 |
| COST | $651–$764 | $453–$573 |
| JPM | $169–$193 | $139–$152 |
| NEE | $63–$67 | $64–$75 |
| LLY | $651–$786 | $323–$514 |
| TMO | $537–$573 | $494–$543 |
| ADP | $242–$247 | $205–$239 |
| SHW | $291–$317 | $250–$266 |
| META | $388–$487 | $266–$284 |
| RTX | $90–$101 | $86–$93 |
| CMG | $49–$60 | $33–$42 |
| WING | $270–$368 | $162–$220 |
| DKNG | $37–$43 | $28–$34 |
ETF Entry Points
| Ticker | Daily Entry | Weekly Entry |
|---|---|---|
| VUG | $313–$346 | $256–$279 |
| VGT | $480–$527 | $370–$424 |
| VOO | $439–$477 | $370–$406 |
| SMH | $186–$228 | $124–$154 |
Key Takeaways
- →June 2024: Multiple new ATHs as AI theme dominated. NVDA split 10-for-1 on June 10.
- →New additions: CMG, WING, DKNG as consumer discretionary plays.
- →Concern: Market heavily concentrated in Magnificent Seven; breadth remains limited.
- →Upcoming July catalyst: Q2 earnings season begins.
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