11/30 Best Idea For The Week Ahead

We closed up the month in a clear breakout with our highest close ever on the SPY. This has been an incredible the last 18+ months where markets have gone straight up, look how overheated the RSI is right now. It was normalization after the chaotic 2022 where everything re-rated lower but we have not closed below the 8 month average(dark blue line) in well over a year. I do believe we are due some consolidation soon, look where the 21 month(light blue line) is, nearly 20% lower, but I think that consolidation will come next year as people will be hard pressed to sell winners into year end and would prefer to create the taxable event next year if it is smooth sailing the rest of this year.

This week’s best idea is a great name that has been a laggard the last few weeks. There is reason to believe that one of the major headwinds holding it down was recently resolved or in the process of being resolved. Analyst targets remain materially higher, the fundamentals are stellar, and I think the past couple months of weakness are a great buying opportunity as I expect this name to be leader in 2025. I have a solid 1 month trade here to try and profit off buying the name at a key moving average.