Market Update 9.21.24

This week’s market action was marked by a notable event: the FOMC rate cut of 50 basis points. We published a mid-week update shortly before the announcement, explaining that we saw a 50/50 chance of gains versus losses. In response, we reduced our leveraged positions prior to the meeting while keeping our unleveraged index ETFs in place. This strategy minimized our risk exposure while still allowing us to benefit from potential market upside.

Despite the significant news, the model was spot-on with its weekly prediction, which was published last week. DIA was projected to end the week at 420.33, and the actual close on Friday was 420.57. SPY was projected to close at 568.75, with an actual close of 568.25. QQQ was projected to finish at 482.48, and the actual close was 482.44. These results are impressive.

Looking ahead to next week, the AI-derived model predicts...