In today’s issue, we dive into why an overbought market might be causing traders some sleepless nights, yet offering a golden opportunity for investors. We’ll explore the intriguing trend of the Nasdaq 100, which hasn’t seen a significant daily drop in over a year. Could a correction be on the horizon? Our experts weigh in.

Also, in this week’s edition, discover insights from the latest market analysis and learn how you can leverage this knowledge for better trading decisions. Expect some fascinating trivia sprinkled throughout to keep things lively.

Get ready to uncover why the Relative Strength Index (RSI) might be signaling short-term caution but long-term promise. Jefferies’ latest analysis suggests that while the S&P 500’s recent overbought status might seem alarming, history shows it could actually be a beacon for future gains.

Stay tuned for today’s main theme: An overbought market is a worry for traders but great for investors. Plus, look out for some surprising facts and tips that might just give you the edge in your trading strategy this week.

This Week I Learned…

Did you know that emotions play a huge role in the stock market? It’s not always about logic and analysis; sometimes, it’s about fear and greed. The Fear and Greed Index is a tool that measures these emotions, helping investors gauge market sentiment.

When the index shows extreme fear, it means investors are overly pessimistic, often selling stocks out of panic. This could be a buying opportunity for those who believe the market has overreacted. Conversely, extreme greed indicates excessive optimism, potentially leading to inflated stock prices and a higher risk of a market correction.

By understanding the Fear and Greed Index, you can gain valuable insights into the emotional state of the market. This knowledge can help you make more informed investment decisions, avoiding impulsive moves driven by fear or greed. Remember, successful investing is not just about numbers; it’s also about understanding the psychology behind them.

The Fun Corner

Fun Corner: The Nasdaq’s Longest Winning Streak… Or Is It?

The Nasdaq 100 has been on fire lately, boasting its longest streak of positive days in history. But did you know there might be a secret contender for the title?

Rumor has it that a certain groundhog named Punxsutawney Phil has been quietly outperforming the tech-heavy index. With his uncanny ability to predict the weather (and consequently, the market’s mood), Phil has reportedly racked up an even longer winning streak.

While we can’t confirm the veracity of this claim (Phil’s broker declined to comment), it certainly adds a playful twist to the market’s recent performance. So, next time you’re analyzing the Nasdaq’s impressive run, spare a thought for the furry forecaster who might just be giving it a run for its money.

The Overbought Bull: Can the Bull Jump Over the Cliff Safely?

As the second quarter comes to a close, the S&P 500 is flirting with record highs, despite recent wobbles in tech giants like Nvidia. While the bulls are celebrating, a hint of unease lingers in the air. Could this seemingly unstoppable market optimism be a sign of trouble ahead?

The Nasdaq 100, a haven for tech titans, has experienced a historic winning streak, with 16 consecutive positive Julys and 379 days without a significant daily drop. However, past performance doesn’t guarantee future results, and some analysts warn that such extended optimism often precedes a market correction.

Jefferies analysts have observed an “overly cheerful” market sentiment this year, with the S&P 500 experiencing more positive days than its historical average. While this could raise concerns of excessive exuberance, it could also indicate further upside potential.

The 14-day relative strength index (RSI) for the S&P 500, a key technical indicator, recently entered “overbought” territory, signaling a potential slowdown in short-term performance. However, historically, an overbought RSI has been a surprisingly positive indicator for long-term investors.

As the market balances on the tightrope between optimism and caution, the question remains: Is this the peak of a bull run or merely a pause before the next leg up? The answer, as always, lies in careful analysis, informed decision-making, and a dash of calculated risk.

The Last Say

Ride the Bull, Be Mindful of the Cliff

As we wrap up this week’s edition, it’s clear that the market’s current state is a paradox: brimming with optimism yet teetering on the edge of potential volatility. The Nasdaq’s historic streak, the S&P 500’s near-record highs, and the “overly cheerful” sentiment all point to a bullish trajectory. However, the whispers of caution from analysts and the technical indicators flashing “overbought” remind us that the landscape can change quickly.

So, what’s the takeaway for investors? Embrace the current upswing, but do so with a healthy dose of prudence. Keep a watchful eye on market signals, diversify your portfolio, and be prepared for potential shifts in sentiment. Remember, the market is a marathon, not a sprint, and a steady, informed approach is often the most rewarding.

The post Overbought, Overjoyed, or Overdue for a Correction? appeared first on Global Investment Daily.

Key current infrastructure projects are focused on the following areas:

• Roads
• Bridges
• Airports and Seaports
• Building a nationwide network of EV charging stations
• Expanding broadband internet access for everyone, including rural areas.
• Clean water projects
• Green energy initiatives
  

Before the first shovel goes into the ground, the projects need to be engineered.

In this report, I will put the spotlight one of the major engineering firms: Jacobs Solutions, Inc. (NYSE: J).

Jacobs Solutions, Inc. (formerly known as Jacobs Engineering Group) is a global professional services firm that provides a wide range of technical, professional, and construction services to various industries, including aerospace, defense, environmental, infrastructure, transportation, petroleum, and more. The company’s services cover areas such as engineering, architecture, construction, operations, consulting, and maintenance.

Key Services: Jacobs offers a diverse set of services, including:

1. Engineering and Design: The company provides engineering, design, and consulting services for projects ranging from infrastructure development to industrial facilities and more.
   
2. Construction: Jacobs is involved in the construction and management of various projects, including infrastructure, energy, and environmental projects.
   
3. Consulting: The company offers consulting services in areas like environmental sustainability, risk management, and business strategy.
   
4. Infrastructure Development: Jacobs is known for its involvement in large-scale infrastructure projects, such as transportation systems, water treatment facilities, and urban development.
   
5. Aerospace and Defense: The company has expertise in supporting aerospace and defense projects, including research and development, engineering, and technical services.

History: Jacobs Engineering Group was founded in 1947 by Dr. Joseph J. Jacobs. Over the years, the company expanded through acquisitions and organic growth. It became a prominent player in the engineering and construction industry, providing services to governments, private companies, and various sectors.

 Jacobs has been on the receiving end of multiple infrastructure projects in 2023 including.

• A California Recycled Water Plant Expansion
• Major Renovation of Seattle-Tacoma Airport
• $450 Million Great Lakes EPA Superfund Cleanup Projects
• Virginia Passenger Rail Expansion Program

Jacobs stock price has jumped impressively from in 2023 from $118 to $136 for a 15 percent YTD increase in share price.

Birds of a Feather

With hundreds of billions of dollars being awarded to infrastructure projects, the entire engineering sector is reaping benefits from these contracts since the beginning of 2023. Here’s just a few of them:

• AECOM (ACM) Shares rose from $83 to $90
• Emcor Group (EME) Ran up from $142 to $220
• Sterling Infrastructure (STRL) Rose from $32 to $83
• KBR (KBR) Share prices rose modestly from $52 to $60

As infrastructure contracts continue to get awarded, remember that it all starts with engineering. Stay tuned to Global Investment Daily as we monitor this sector.

The post <strong>Investing in Infrastructure? </strong><strong><br></strong><strong>It All Starts with Engineering</strong> appeared first on Global Investment Daily.

Environmental factors include a company’s impact on the environment, such as its carbon emissions, resource usage, and waste management. Social factors include a company’s relationships with its employees, customers, and communities, as well as its impact on human rights and labor practices. Governance factors include a company’s management structure, board diversity, executive compensation, and shareholder rights. 

ESG investing seeks to balance financial returns with social and environmental responsibility. It aims to invest in companies that are sustainable and ethical, and avoid investing in companies that have a negative impact on society and the environment. 

ESG investing has gained popularity in recent years as more investors recognize the importance of considering non-financial factors when making investment decisions. It is also seen as a way to influence companies to adopt more responsible practices, as investors can use their investments as a way to pressure companies to improve their ESG performance.

Characteristics of ESG Exchange Traded Funds (ETFs)

ETFs in the ESG space are careful about screening out companies that don’t score well for the 3 main pillars of ESG Companies.  The ETHO Climate Leadership US ETF (ETHO), for example, screens out any companies associated with fossil fuels, tobacco, weapons and gambling companies, according to a report in US News and World Report.

ETHO Daily Chart (Tradingview)

Other  ESG ETFs mirror the same performance of ETHO, Some of them include:

• VanEck HIP Sustainable Muni ETF (SMI) 
• AXS Change Finance ESG ETF (CHGX)
• Nia Impact Solutions Fund (NIAGX)
• Democracy International Fund (DMCY)
• AXS Green Alpha ETF (NXTE)

Before you consider investing in any ETF, make sure to thoroughly research the fund’s mission and performance.

We will continue to keep an eye on the ESG sector in future reports.

The post <strong>What to Know About ESG Investing in 2023</strong> appeared first on Global Investment Daily.