Weekly Market outlook 11/17
Can Jensen pull another rabbit outta his silicon
Hello traders,
Hope you had a great weekend and got some much needed rest and recreation after what was a crazy week in the markets.
To recap our last week, here a few select ideas.
Classic knife catch.
CPI day was action-packed as usual:
Long scalps on Thursday and then the mega short.
Friday was an excellent downside momentum day for us.
And finally for EOD retracement, we got a few NQ longs and spx 0dte lottos in.
Moving on,
Last week, I had a passing mention of VTV 0.00%↑ and why it can be a superior place to park capital during correction on Nasdaq.
When the Nasdaq hits a rough patch, the Vanguard Value ETF (VTV) offers a steady, reliable alternative for investors looking to weather the storm. Unlike the Nasdaq, which is packed with high-growth, high-risk tech companies in areas like AI, semiconductors, and cloud computing, VTV focuses on large-cap value stocks—companies with solid earnings, lower price tags, and consistent cash flow. While tech stocks can soar during booms, they often tumble hard during downturns, leaving portfolios exposed. VTV, by contrast, shines in choppy markets, providing a stable place to park your capital.
What sets VTV apart is its resistance to hype-driven swings. Value stocks generally trade at more reasonable valuations, making them less prone to dramatic price drops. Plus, VTV’s portfolio spans a range of sectors—healthcare, financials, energy, and consumer staples—all of which tend to perform better when economic uncertainty is high. Another perk? Many of VTV’s holdings pay dividends, offering a steady income stream even when markets are down. This mix of stability and income makes VTV a smart choice for anyone looking to ride out volatility.
Timing is everything, and now could be the perfect moment to look at VTV. Tech valuations are stretched after the 2023 bull run, and rotating some of those gains into value stocks could lock in profits while reducing risk. VTV’s focus on resilient sectors like healthcare and financials makes it especially attractive during periods of slowing growth or rising interest rates. And history backs this up—value stocks tend to hold up better during market corrections, providing a reliable anchor for your portfolio.
But VTV isn’t just for defense. It’s a strong long-term play, too. Pairing it with growth-heavy funds like the Invesco QQQ gives your portfolio balance, cushioning the ups and downs. Its broad exposure across industries means you’re not putting all your eggs in one basket. Add in the dividends, and you’ve got a fund that delivers both stability and steady returns.
With components other than Broadcom ($AVGO) boasting reasonable valuations, VTV looks well-prepared to handle whatever comes next. Whether the market storm arrives or not is anyone’s guess, but after tech’s impressive run, moving some of those profits into a steadier, value-driven fund like VTV might just be the chill move you make.
This week, we do not any significant economic data other than the Nvidia earnings.
I will send a note midweek post Nvidia earnings to recalibrate the strategy, if needed.
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Levels for the week:
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