Pleased New 12 months!
All through 2024, I will be commenting on varied sectors, trade teams, and particular person shares that flash breakouts and relative energy, however what about shares which can be simply starting to strengthen? There are lots of particular person shares that set 52-week and all-time highs as we ended 2023, however these are two that struggled in 2023 and now seem like headed for a a lot stronger yr:
3M Firm (MMM):
It definitely seems as if a prolonged downtrend in MMM has reversed:
Breaking absolutely the value downtrend is our first clue that issues could possibly be a lot totally different in 2024 for MMM. Additionally, word that the weekly PPO has turned constructive for the primary time since Q3 2021. The following confirming sign could be a transparent reversal to the upside within the relative efficiency of MMM vs. the benchmark S&P 500. Within the backside panel above, you possibly can see that MMM is difficult that relative downtrend line as we open 2024.
Lastly, MMM has a dividend yield of 5.47%, doubtlessly organising as a pleasant funding for these with extra of an earnings mentality, versus capital appreciation. Maybe MMM will present good capital appreciation in 2024 as a kicker.
Citigroup, Inc. (C):
C broke the same downtrend throughout This fall 2023, after trending decrease with most banks. Inverted yield curves traditionally influence banks the strongest as they squeeze banks’ internet curiosity margins, which is a key driver in financial institution earnings. The inventory market appears forward, nevertheless, and I imagine the expectation of a number of fee cuts within the fed funds fee helps to drive present outperformance of banks. It is fairly more likely to proceed in 2024. On the C chart, you possibly can see the reversal in its downtrend reasonably clearly:
Along with the extra favorable value chart, C additionally boasts a robust 4.04% dividend yield, offering one other stable earnings choice for that type of investor. Any extra capital appreciation could be icing on the cake.
On Monday, I’ll present a expertise firm that seems poised for a really robust 2024. There’ll seemingly be a pair triggers to look at for to verify a robust yr forward, however the current absolute and relative value energy, together with a wonderful AD line is offering early bullish indicators. If you would like to see this chart, I am going to ship it to your e mail handle Monday morning. Register HERE for our FREE EB Digest e-newsletter.
Additionally, subsequent Saturday, January sixth is our annual MarketVision digital convention. Grayson Roze, StockCharts.com’s Director of Operations, will be a part of me for “MarketVision 2024: Past The Fed”, the place I am going to present my 2024 inventory market forecast and S&P 500 goal. It was one yr in the past that I precisely forecast that the S&P 500 would attain 4700 by the tip of 2023. There weren’t many bulls to be discovered a yr in the past, however because it turned out, the bullish aspect was the precise aspect because the S&P 500 gained 24% to complete the yr at 4769.83. I believed we would see roughly 23%. 1% off, not unhealthy. For extra info and to register for this yr’s occasion, CLICK HERE.
Pleased New 12 months and blissful buying and selling!
Tom
Tom Bowley is the Chief Market Strategist of EarningsBeats.com, an organization offering a analysis and academic platform for each funding professionals and particular person traders. Tom writes a complete Each day Market Report (DMR), offering steering to EB.com members day by day that the inventory market is open. Tom has contributed technical experience right here at StockCharts.com since 2006 and has a basic background in public accounting as nicely, mixing a novel talent set to method the U.S. inventory market.
