Source: Zhitong Finance "Since 1950, the S&P 500 index has risen more than 10% 21 times as of the end of May. In about 90% of these cases, the S&P 500 index rose for the rest of the year. There were only two instances of declines for the rest of the year, in 1987 (-13%) and 1986 (-0.1%)." With the rebound of the stock market, the old adage "Sell in May and Go Away" seems to have been a bad advice once again. Last month, the S&P 500 index rose 4.8%, the best May performance since 2009. The NASDAQ 100 index rose nearly 6.2%, and the NASDAQ Composite Index rose 6.9%. Goldman Sachs FICC & Equities Trading Division said: "History doesn't really support this saying. Don't sell, leave the market (go on vacation), and enjoy the good times." The rising trend is still to be continued? If history is any guide, it may indicate that the rise of the stock market is not over yet. Looking ahead to the rest of 2024, Scott Rubner, Managing Director of the Goldman Sachs Global Markets Division and tactical expert, pointed out the following historical background for investors. Rubner stated that the S&P 500 index has risen 10.7% year-to-date, and since 1950, the S&P 500 index has risen more than 10% 21 times as of the end of May. In about 90% of these cases, the S&P 500 index rose for the rest of the year. There were only two instances of declines for the rest of the year, in 1987 (-13%) and 1986 (-0.1%). "Since 1950, the median return of the last 7 months of each year (June 1 to December 31) is 5.4%. In the aforementioned 21 cases, the average performance of the last 7 months increased to 8.1%." Rubner added. Rubner also pointed out that the NASDAQ index has risen for 16 consecutive Julys, with an average return of about 4.64%.
With its share price falling by 29.5% this year, the market has questioned Musk's multi-line operations strategy and its impact on the company's future. As CEO of Tesla, Musk also manages SpaceX, Neuralink, The Boring Co., as well as his recently acquired social media platform X (formerly Twitter) and AI startup xAI.$Apple (AAPL.US)$The stock price rebounded from Monday's decline and reached a new all-time high, with the call options trading volume of the stock reaching the highest level since 2021.
As of 2:24 p.m. New York time, the number of call options trading of this technology company is about 2.4 million, which is four times the average trading volume on any trading day in the past month. The number of call options is twice that of put options, and most of the trading is focused on contracts expiring on Friday.
Susquehanna International Group said that the change in implied volatility and a large number of call options implied "buying call options while the stock price is volatile". The demand indicators for put and call options also show similar trends, with investors bidding higher for the latter. The most traded call options have strike prices of $205 and $200. As of midday, the stock was trading above the strike prices, making these contracts valuable.
On Monday, after Apple's global developer conference ended, the stock price fell, and investors snapped up Apple options. The company's AI plan initially failed to impress Wall Street, causing the stock to fall 1.91% on Monday. However, with investors' views on this event becoming more optimistic, the stock price reversed sharply on Tuesday - a common trend after Apple's announcement in the past. As of Tuesday's close, Apple rose 7.26% to $207.15.
Gareth Ryan, managing director of IUR Capital, said, "This looks like another 'jump on the bandwagon' trade that has affected many companies recently. The difference is that Apple can actually prove this through the introduction of artificial intelligence. No meme stock can prove that its price movement is reasonable."
Editor/tolk