6000 SPX is a lock

Andrew Giovinazzi

BY ANDREW GIOVINAZZI

October 13, 2024

Yo Pit Crazies,

Two weeks of traveling is coming to an end this weekend and it will be good to get back to Maine. All things worked out well and I did a decent job of setting up an office in North Carolina in case I need it in the future.

5800 is the new hard deck for stocks like 5000, 5100, 5200, 5300, 5400, 5500, 5600 and 5700 were this year. The difference now is most tech stocks are not really making a run at highs except for Nvidia Corp (Ticker: NVDA), Netflix Corp (Ticker: NFLX) and Meta Inc (Ticker: META). It is not that big tech is doing poorly, just not jumping like the first 6 months of the year.

It is one of the reasons my Flash 10 start is 5 for 6 or 10 of 12 if you count stock and options. This will create great end of day closing opportunities for lots of other stocks. Mid life bull markets start to pull other stocks into their orbits and multiples expand.

SPX 1 year chart

Is this SPX really a bull market that can go to 6000 by year end?

Let’s see.

SPX is set to have its best year ever

The reason of course is the growth around AI. You only had to see the Tesla Inc (Ticker: TSLA) spectacle Thursday night to see that the future is coming. It won’t be next week, but it is coming fast. I expect some volatility around TSLA into the election because Elon Musk is hooking his wagon to Trump. The black eye Musk gave the FCC over Starlink in rural areas is not going away. He can deliver connectivity for $400 per person when the FCC wants to spend $6000. Our tax dollars are working hard once again and yet another L for the Harris campaign this week whose job it was to rollout rural broadband.

The real story is below. Lower realized volatility in a rising SPX. That is the stuff of bull markets. The lower realized volatility is hiding under the higher election VIX.