Below is the "Chart of the Day" from today's Early Look and a brief excerpt written by Hedgeye CEO Keith McCullough. If you're interested in learning more about how we approach protecting and growing our capital, make sure to download Keith's free 52-page eBook below.
The bad news is that, post the largest 1-day drop in US Market Cap #history for a Single Stock, NVDA still has a monster +6.6% weight in the SP500 Index. The good news is that despite NVDA’s -29% Negative Impact (see Chart of The Day from Tier1 Alpha) on SPX, 70% of stocks in the SP500 actually closed UP an average of +2.0% yesterday! That was a very bullish signal for The Cycle. Can the US Economic Cycle accelerate while NVDA decelerates? A: yes. In fact, as of this morning, that’s our highest probability scenario for both our MONTHLY January and QUARTERLY (Q1 of 2025) US GDP and Inflation (CPI) Nowcasts. |