To The Moon

As we have ended the third quarter and now into the first month of the fourth quarter, I feel that we can take some time to look at how September have been for the S&P 500 sector, and how did the sector do on the last week leading to end of September?

We have seen some significant from these few sectors over the past 1 month, S&P 500 Consumer Discretionary have a more than 7% gain, followed by Utilities with 5.89% and communication services was third at 3.53% gain.

So which are the stocks that are contributed to these performance?

S&P 500 Consumer Discretionary Sector Top 3 Performing Stocks

Over the past one month, we are seeing two resort stocks Las Vegas Sands and Wynn Resorts contributing the awesome 7% performance for consumer discretionary, but what is worth noting is $Tesla Motors(TSLA)$

Telsa has a more than 20% gain over 1 month, this is impressive and I am looking for more upside potential from Tesla as we can see that traders and investors are back for this stock.

This is due to the.optimism surrounding upcoming events like the October Robotaxi announcement and long-term growth prospects.

So I am expecting consumer discretionary sector to continue to perform in October.

Consumer Discretionary In Leading Quadrant

There is signal that consumer discretionary sector would continue to perform as we are seeing that it is currently well positioned in the leading quadrant.

Stocks like Tesla and some of the resorts would continue to perform as consumers would be spending more on these luxury service and goods, as rate cut would be felt much more by mid of October.

But how was the sectors doing during the last week of the third quarter or rather September 2024?

S&P 500 Materials Sector Up Encouraged By Benefit Of Rate Cut

We are seeing the materials sector gain by 2.02%, this is because of the encouraging benefit from rate cut,

The materials sector tends to be closely tied to the economic cycle—rising and falling with the overall state of economic growth. In the past year, the sector delivered positive but sluggish returns, reflecting concerns over recession risk.

So will this trend continue into the fourth quarter or rather October 2024?

S&P 500 Materials Sector Still In Improving Quadrant

The S&P 500 Materials sector show that it is in the improving quadrant and not having any legs into the leading quadrant, so for October, we might need to monitor and see how the Fed would be showing the potential of more rate cuts.

Whereas for the communication services sector, it is in the leading quadrant which might mean that there is a potential that it will continue to do well in October, so what are the stocks we can look at?

Walt Disney and Alphabet Potential Performance Leading Into October

If we looked at the performance of the communication services sector, based on the weightage and gains, it looked like $Walt Disney(DIS)$ is one stock we can look at, because consumer spending on entertainment especially parks should be coming back as the consumer await rate cut to help reduce their debt, leaving them with extra cash to spend on such entertainment.

The next one would be $Alphabet(GOOGL)$ with its investment into SEA country Malaysia and creating 26,000 jobs, they are beefing up their data centre presence, so I am expecting Alphabet to come aggressive on their AI strategy on their hosting services as well.

I would think that this might also help to push the next sector, Technology as I am seeing more investments should be coming from big tech names.

Summary

Overall, I would think that information technology should be making a recovery as investors might do a rotation from the rate cut benefit sector, and also not forgetting that consumer discretionary sector normally do well when rate cut happen.

Appreciate if you could share your thoughts in the comment section whether you think these sectors would continue to perform in October 2024?

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.