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Shayne Heffernan

Wall Street Key Stocks and Opportunities

By Shayne Heffernan3 min read

The Wall Street rally fizzled out in the first week of 2024, with major indexes snapping nine-week winning streaks. However, experts at Knightsbridge see signs of potential support and buying opportunities amidst the volatility. Here's a breakdown of the key takeaways for Wall Street investors:

Market Overview:

  • Wall Street indexes suffered weekly losses: Dow Jones (0.6%), S&P 500 (1.5%), Nasdaq (3.25%), Russell 2000 (3.75%).

  • S&P 500 found support at the 21-day line, while Nasdaq dipped below its now-sliding 21-day and needs to watch the July-December range for support.

  • Leading stocks faced declines but many found support at key levels. Some bounced and then faded slightly, showcasing indecision.

In 2023, the Dow Jones Industrial Average showcased resilience, rebounding by approximately 14% after a challenging 2022 marked by an 11% decline. However, the index’s performance wasn’t uniform across its constituents. 

Eye on Treasury Yields and Bitcoin:

  • 10-year Treasury yield surged to 4.04%, impacting equities and potentially influencing future Fed policy decisions.

  • SEC approval of the first spot bitcoin ETFs expected next week, potentially fueling wider institutional involvement in crypto.

Stocks Flashing Buy Signals (According to Knightsbridge):

Stock

Symbol

Price

Potential Entry Point

Reason

Nvidia

NVDA

490.97

505.48 flat base buy point

Rebounded from 50/10-week line, analyst predicts $100 billion free cash flow over 2024-2025.

Eli Lilly

LLY

618.55

Cleared early entries, briefly topped flat-base buy point.

MercadoLibre

MELI

1,519.38

Bounced from 50-day line, early entry at 21-day line or official 1,660 buy point.

Snowflake

SNOW

189.12

Still-valid 192.66 cup-with-handle buy point, possible new base forming.

PulteGroup

PHM

101.48

Three-weeks-tight entry with 105.13 buy point holding despite rising yields.

Super Micro Computer

SMCI

292.13

Early entry at 300 level, handle entry at 327.55.

Key Actions for Investors:

  • Build watchlists of stocks finding support and showing relative strength.

  • Maintain open mind and be prepared to adjust positions based on market movement.

  • Don't be swayed by intraday swings, focus on Knightsbridge updates for guidance.

  • Remember, potential buying opportunities might emerge amidst the pullback.

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