SPX sees 6000 by the end of the year

BY ANDREW GIOVINAZZI

October 6, 2024

Yo Pit Crazies,

 

Such a bold claim!  To be honest it is only 5% away at this point and most pundits have expected the worst.  I am in the kick the can down the road camp at this point as it has been working for 20+ years.  If I think about it, technology and innovation has kept things moving for 200+ years and I don’t see that stopping anytime soon.  That is always the bull case and it is a good one.

 

The biggest reason is that other stocks are starting to move.  Will the big growth still happen in the Great 8?  Yes but at some point the valuation gets in the way.  Apple Inc (Ticker: AAPL) is experiencing that to some extent.

 

Part of what is going on in SPX is that it’s able to make new highs without the Invesco QQQ Trust (Ticker: QQQ) making new highs. That means investors are looking at other companies.

 

Why are they?  Because innovation in AI should make larger organizations more productive.  Remember what life was like before online all the time was reality.  Yeah, I don’t either.

 

All that AI needs power and it won’t come from solar panels.  That is one reason oil stocks are moving higher as reality sets in.  

 

But I see some fingerprints in other stocks.

 

This is a good one.

 

Big Fingerprints in Cameco Corp (Ticker: CCJ)

You want to find momentum stocks. You have to look for momentum..  CCJ made a 52 week low recently in early Aug, like a lot stocks and has since been on a tear as new news about nuclear power as a solution is starting to build.

 

Jan2026 options had a very light fingerprint from institutions.  See below.

Fast forward two months and a $15 jump in CCJ, and in-the-money and out-of-the money open interest exploded.  Big price, long term options jumping in volume is a good thing for a stock.

I own CCJ but it is not on my Longshot List because the move really was too fast and I want to see some earnings as part of the bounce.  CCJ has decent earnings but it is getting a higher multiple. The fingerprint says it will get a higher multiple by the end of the year.

 

To Your Trading Success,

 

AG 

Andrew Giovinazzi

30-Year Trading Pro

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Andrew Giovinazzi

Andrew Giovinazzi

Former CBOE floor trader and CIO at Karman Line Capital. Author of ‘The Option Traders Hedge Fund’ with over 30 years of options trading experience.

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