In a recent interview on CNBC, Craig Johnson, Managing Director and Chief Market Technician of Piper Sandler, revisited his impressive prediction from August 2023, where he accurately forecasted a market drop followed by a year-end rally. With his track record, it’s no surprise that CNBC sought his insights once again, this time to uncover his predictions for 2024. In this article, we delve into Craig Johnson’s 2024 market outlook, highlighting his anticipation of a “High-Level Trading Range” (HLTR) and the potential opportunities for small-cap stocks.
Craig Johnson’s 2024 Market Outlook: A Shift from 2023
Craig Johnson started the interview by stating, “For 2024, we think it’s going to be a very different setup than what we had in 2023.” This opening statement immediately piques the interest of investors and analysts, signaling that the upcoming year holds unique challenges and opportunities. Let’s break down his outlook step by step.
Strong Q1 Anticipated
According to Johnson, 2024 is set to kick off with a strong first quarter. This bullish start aligns with the broader economic indicators and market trends, suggesting that investors may witness substantial gains early in the year. The positive momentum carried over from the end of 2023 is expected to fuel this initial surge.
Q2 and Q3 Consolidation
As the year unfolds, Johnson foresees a consolidation period during the second and third quarters. This phase is expected to bring stability and possibly some sideways trading, allowing investors to recalibrate their strategies and assess market conditions. It’s essential to note that consolidation periods often precede significant market moves, making them crucial for long-term investors.
Post-Election Q4 Rally
One of the key highlights of Johnson’s 2024 outlook is the strong push expected in the fourth quarter, following the Presidential election. Historically, election years have witnessed market fluctuations, and Johnson believes that 2024 will be no different. Investors can anticipate increased volatility as the election approaches, with potential opportunities arising after the outcome is determined.
Projected Upside of 9-10%
Perhaps the most critical piece of information from Craig Johnson’s interview is his projection of a 9-10% upside from the current market levels. While this estimate provides a general sense of optimism, investors should exercise caution and conduct thorough research to make informed decisions.
The High-Level Trading Range (HLTR): A Market Shift
Craig Johnson introduced the concept of a “High-Level Trading Range” (HLTR) as a defining feature of the 2024 market landscape. Craig Johnson said that the Magnificent 7 stocks, which dominated in 2023, will become market laggards. Instead, the focus will shift towards small-cap and mid-cap stocks, which are poised to play catch-up.
The Magnificent Seven stocks – Amazon (AMZN), Apple (AAPL), Alphabet (GOOGL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA) all ending a successful year in 2023, outperforming the S&P 500 index.
Opportunities in Small-Cap and Growth Stocks
Johnson’s prediction of small-cap and growth stocks performing well in 2024 offers valuable insights for investors. These sectors have the potential to outperform the broader market, and those who position themselves strategically may reap substantial rewards. It’s essential for investors to conduct thorough research and diversify their portfolios to leverage these opportunities effectively.
Bottom-line: Craig Johnson’s 2024 market outlook paints a dynamic picture of the year ahead. With a strong Q1, consolidation in Q2 and Q3, and a post-election Q4 rally on the horizon, investors should be prepared for a year of ups and downs. Additionally, the concept of a High-Level Trading Range and the emphasis on small-cap and growth stocks underscore the need for adaptability and diversification in one’s investment strategy. As always, it’s crucial for investors to stay informed, monitor market trends, and seek professional advice to navigate the ever-changing financial landscape.
- Hoth Therapeutics breakthrough! 🧬✨ Why one patient sent Hoth Therapeutics stock forecast soaring by 81% in a single day! - September 8, 2024
- BloomZ Stock Price Just Exploded! Here’s the scoop on their latest alliance and why investors are excited 💥 - September 8, 2024
- The 10-year Treasury rate chart shows a surprising twist… Did hedge funds miscalculate with their record shorts? 🤔 - September 8, 2024
💥 GET OUR LATEST CONTENT IN YOUR RSS FEED READER
We are entirely supported by readers like you. Thank you.🧡
This content is provided for informational purposes only and does not constitute financial, investment, tax or legal advice or a recommendation to buy any security or other financial asset. The content is general in nature and does not reflect any individual’s unique personal circumstances. The above content might not be suitable for your particular circumstances. Before making any financial decisions, you should strongly consider seeking advice from your own financial or investment advisor.
