The H.E.A.T. Formula
August 9, 2024
July 18, 2024

Financial News vs. Noise

All The News That Isn't Fit To Print

Matthew Tuttle Keeps Challenging the Establishment-ETF.com

ETF Innovator Offers Early Exposure to Hot Stocks-ETF.com

How Covered Call Strategies Are Evolving to New Structures-NASDAQ Trade Talks

The rotation we have seen over the past few days continued somewhat yesterday with the Dow up while everything else got crushed. Small caps didn’t participate, but weren’t down as much as the Nasdaq or SPX.

Tech Shares Log Worst Day of 2024-WSJ

A drop in Magnificent Seven shares helped send the tech-heavy gauge down 2.8%, its biggest one-day decline since December 2022. The S&P 500 fell 1.4%. The Dow Jones Industrial Average, meanwhile, added 0.6%, clinching a fresh high.

This morning looks like it could go either way, they are trying to keep the QQQs green, and NVDA especially. My sense continues to be that you buy the dips and sell the rips and what we are seeing is just a healthy rotation (albeit one that doesn’t look healthy) that take some of the froth out.

Goldman disagrees…

Don’t buy the dip as the summer slump is officially here, says Goldman strategist-MarketWatch

“The pain trade is no longer higher from here. I am not buying the dip,” Rubner told clients in a note.

ASML was the named catalyst yesterday on a report that the Biden administration is trying to prevent their equipment from being sent to China. They also reported earnings with guidance below forecast. I am not an AI expert by any means, but my understanding is that if you want to do anything in AI you need ASML. ASML CEO Christophe Fouquet’s comments probably didn’t help the market much…

"I think what we have seen with AI is a major investment from many companies in supercomputer in the ability basically to train models. What we still miss in AI, I think, is the emergence of end product. So I think today, there's not much revenue made on AI. There's just a lot of investment. What we see is still that investment require a lot of capacity."

Outside of the semi’s, I am most interested in the regional banks. They continued to ramp yesterday and one of my short models triggered shorts on a bunch of them, including RF, PNC, CFG, and KEY. We also continue to see volume and flows in SKRE.

I still also think anything power related should be bought on dips. AI will require a ton of power. Utility Stocks Got Hit by the Trump Trade. Why They Still Look Good.-Barron’s

The reason for the drop is simple: A second Trump term could reduce or eliminate tax credits supporting the buildout of utility-scale wind power and solar projects, effectively making renewable power projects more expensive to build and finance.

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Matthew Tuttle is the Chief Executive Officer and Chief Investment Officer of Tuttle Capital Management, LLC.

At Tuttle Capital Management (“TCM”), we want to help educate investors about different ways to allocate and manage assets. TCM strives to create innovative portfolio management tools coupled with investment strategies designed to help mitigate risks and potentially enhance returns.

The views and opinions expressed herein are those of the Chief Executive Officer and Portfolio Manager for Tuttle Capital Management (TCM) and are subject to change without notice. The data and information provided is derived from sources deemed to be reliable but we cannot guarantee its accuracy. Investing in securities is subject to risk including the possible loss of principal. Trade notifications are for informational purposes only. TCM offers fully transparent ETFs and provides trade information for all actively managed ETFs. TCM's statements are not an endorsement of any company or a recommendation to buy, sell or hold any security. Trade notification files are not provided until full trade execution at the end of a trading day.  The time stamp of the email is the time of file upload and not necessarily the exact time of the trades. 

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