"Things About to Heat Up!"

Hi There! The Rhoda Report has gracefully hit its 69th issue, and I couldn't help but smile at the number— not for the reasons some might think! The number evoked the playful Caribbean idiom "six for a nine," a phrase deeply rooted in Grenadian culture and recognized across the Caribbean. This expression humorously warns against being misled into a silly or false situation, a light-hearted reminder of the tricks life can play. Beyond its cautionary tales, in some Caribbean islands, the phrase also serves as sage advice: don't do things halfa$$, and don't cheat your way through. It's a call to authenticity and integrity, wrapped in the warmth of island wisdom, reminding us to approach our endeavors with full commitment and honesty.

Alright, let’s dig in!

Last week marked another astonishing period for the stock market, kicking off with a significant development early in the week.

The release of the FOMC minutes made it abundantly clear that the possibility of a March rate cut was virtually non-existent, setting a cautious tone among investors. However, the mood swiftly shifted as Nvidia (NVDA), a leading figure in the artificial intelligence (AI) space, saw its stock advanced, briefly surpassing a $2 trillion market valuation for the first time. This milestone followed the company's impressive earnings report released after market close last Wednesday, highlighting the burgeoning AI wave that began in 2023 and signaling that this trend is still in its early stages. Investors were advised to focus on companies providing essential infrastructure for AI's growth.

As the week progressed, the stock market continued its upward trajectory, culminating in the S&P 500 and Dow reaching new record highs. This achievement was supported by weekly gains across all three Wall Street benchmarks, with the Dow up by 1.3%, the S&P 500 increasing by 1.71%, and the Nasdaq climbing 1.43%. The rally was sustained by the momentum in AI stocks, underscoring the sector's significant influence on market movements.

Contrastingly, the oil market faced a downturn, with both Brent and WTI experiencing declines of about 2% and more than 3%, respectively. This was attributed to statements from U.S. central bank policymakers, suggesting potential delays in interest rate cuts for at least two more months, affecting investor sentiment in the energy sector.

In the cryptocurrency realm, notable developments included Solana (SOL) integrating Filecoin (FIL) as a decentralized storage solution, aimed at enhancing the reliability and scalability of the Solana Blockchain. This strategic move is expected to improve access and usability of block history for various stakeholders, leveraging Filecoin's decentralized storage for greater data redundancy, scalability, and security. Additionally, Stacks (STX) emerged as a standout performer, capturing the attention of market participants and highlighting the dynamic and evolving nature of the cryptocurrency market.

Here are other key highlights from last week:

• Wormhole to use AMD chips for scaling cross-chain messaging

• Pudgy Penguins partners with Unstoppable Domains to launch .pudgy

• Polygon teams up with Animoca Brands to develop palm-based ID

This week in the markets:

• Bitcoin (BTC):

  • BTC hit $64K for the first time since November 2021, sparking widespread discussion.

  • The surge is attributed to:

    • Institutional FOMO, highlighted by:

      • MicroStrategy purchasing an additional 3,000 BTC, bringing its total holdings to around 193,000.

      • US spot Bitcoin ETFs attracting over $17B from institutional investors.

    • Anticipation of the upcoming Bitcoin Halving, with expectations of a pre-halving rally and a steady uptrend.

• Amazon and the Dow Jones:

  • Amazon replaced Walgreens in the Dow Jones Industrial Average on Monday, February 26, 2024.

• Nancy Pelosi's Investment:

  • Disclosed a purchase of $1.25M in Palo Alto Networks (PANW) call options, strike price of $200, expiring on Jan. 17, 2025, made on Feb. 12.

• Key U.S. Economic Events:

  • Monday: New Home Sales in January disappointed, hitting 2-year price lows.

  • Tuesday: CB Consumer Confidence and Durable Goods Orders were less than expected.

  • Wednesday: Q4 GDP was lower than anticipated.

  • Thursday: US Core PCE prices rose 2.8% Y/Y for February, aligning with expectations but slowing from 2.9% in December, marking the lowest annual increase since March 2021.

  • Friday: ISM Manufacturing PMI report will be released.

The most anticipated earnings releases this week are outlined in the chart below.

Trading Tip: March historically strong early in the month!

Week 2/18/24 - 2/24/24 Recap

Special Tools and Strategies

Dividend Kings

• What is a Dividend King?

  • A Dividend King is a prestigious title awarded to a company that has increased its dividend payouts to shareholders for 50 consecutive years or more. This remarkable achievement signifies a company's financial stability and its dedication to providing reliable returns, making them a beacon of consistency and resilience for investors.

• Significance of Dividend Kings

  • Dividend Kings are celebrated for their ability to offer a steady income stream, which is particularly appealing for those seeking financial security. Their track record of increasing dividends reflects their financial strength and reliability, making them some of the most dependable stocks for investors looking for stable income sources.

• History of Dividend Kings

  • The concept of paying dividends has been a cornerstone of the stock market for many years, but the term "Dividend Kings" became popular in the late 20th century. These companies have demonstrated exceptional performance and resilience, thriving through economic downturns and consistently increasing dividends, showcasing their stability, smart financial management, and robust business models.

• How to Identify and Choose Dividend Kings

  • Conduct Fundamental Analysis: Examine a company's financial health, focusing on earnings, cash flow, profit generation, dividend payout ratio, debt levels, and revenue growth trends. This helps assess the sustainability of its dividend payments.

  • Review Historical Data: Look into the company's dividend growth history to understand its consistency and commitment to shareholder rewards. Patterns in dividend increases can indicate the company's ability to manage economic challenges effectively.

By understanding these aspects, beginner traders and investors can make informed decisions when considering Dividend Kings as a part of their investment portfolios. Furthermore, they can focus on companies that offer not just returns but also financial stability and reliability.

Disclaimer: This newsletter is strictly educational. The information this report provides does not constitute investment, financial, trading, or any other advice. You should not treat any of the report’s content as such. Please be careful and do your research.