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Semiconductors to the rescue! The major semi indices/ETFs spiked over 4% on Monday after taking it on the chin (though not really, considering how far they have come) since July 10. The chip stocks propelled the Information Technology sector and the sector reignited the Nasdaq, Nasdaq 100 (QQQ), and the S&P 500 (SPX). And it wasn't just tech, as nine of the 11 SPX sectors rose. The semi heavyweights did their usual thing, with NVDA up 5%, ASML +5.3%, QCOM +4.7%, AMAT +6.3%, LRCX +6.6%, and KLAC +6%. Some of these behemoths report Q2 results this week or next. Yet it's only one day and the indices and ETFs rebounded only to the underside of their five-day exponential moving averages (EMAs). All of them remain on five-/13-day EMA crossover sell signals and all have broken their uptrends off the early May secondary lows. The S&P 400 bounced 1.3% after hitting its 13-day EMA, and the Russell 2000 popped 1.7%, rebounding off its 10-day EMA. For the indices, there isn't a lot of resistance overhead and new all-time highs are not far away. It's very possible that the upcoming earnings reports will decide the short-term fate of the market, and it is also possible that the bearish seasonals may dictate the near term. Looking out to the end of 2024 and into 2025, there seems to be significant evidence that new highs will be posted, this based on historical studies that detail what prices have done since October 2022 as well as October 2023. In addition, based on the width and depth of the base traced out in 2022 and 2023, there are measured moves that target higher prices. (Mark Arbeter, CMT)

The Vickers Top Insider Picks is a daily report that utilizes a proprietary algorithm to identify 25 companies with compelling insider purchase histories based on transactions over the past three months.

Dividend income is often overlooked amid gyrations in the stock market. But dividends are an important element of return. Dividend income accounted for 42% of the total return of the S&P 500 between 1930 and 2012, according to Hartford Funds. And that's just the average. In some of those decades, dividends accounted for more than 50% of total returns and even 100% of returns. More recently, dividends have accounted for a smaller portion of returns, at around 15%-20%. Not for nothing, in 2022, dividend payments softened the blow when most market indices turned bearish as the Federal Reserve hiked interest rates. Not all dividends are created equal, though, and it is important to understand the difference between the two main categories: high-yield stocks and dividend-growth stocks. High-yield stocks typically have dividends that pay out in the 5%-8% range. Though the income appears attractive, the share prices of high-yield stocks could signal some risks. Dividend-growth stocks typically have lower yields, often in the 1.0%-2.5% range. But the lower-yielding dividends are not likely to be a huge component of cash flow, leaving management teams with other value-additive options for deploying cash -- such as share buybacks, M&A, the repayment of debt, or reinvestment in the core business. Below is a partial list of Argus BUY-rated stocks that are included in our June Dividend Growth Theme Model Portfolio.

The Vickers Top Insider Picks is a daily report that utilizes a proprietary algorithm to identify 25 companies with compelling insider purchase histories based on transactions over the past three months.