SPY - Stocks Stretched: Eyeing A Pause In VOO's Rally Amid A Magnificent 7 Boom
2024-02-13 17:22:43 ET
Summary
- The S&P 500 Index is up 5.5% in 2024, led by mega-cap tech stocks, while small caps are down slightly.
- Large caps' Q4 earnings beat rate is 72% with 50% of firms beating on the top line, cementing an end to last year's earnings recession.
- The U.S. stock market's rally has been intense, though the narrow market breadth and weakening RSI momentum as we head into a risky stretch on the calendar are risks.
It has been a strong start to the year for the Vanguard S&P 500 ETF (VOO). U.S. large caps are up 5.5%, with mega-cap tech leading the way. The Invesco QQQ Trust ETF (QQQ) has returned 6.7% through Super Bowl weekend, though small caps, as measured by the iShares Russell 2000 ETF (IWM), are actually down a bit more than 2% thus far in 2024. While not an age-old Wall Street investing adage, 'buy the World Series, sell the Super Bowl' is a reasonable notion. Equities have been up huge since late October, while the S&P 500 (SP500) now trades above 20 times forward operating earnings per share estimates, according to FactSet....
Stocks Stretched: Eyeing A Pause In VOO's Rally Amid A Magnificent 7 Boom