November 8, 2023

Markets:

U.S. stock futures were little changed Wednesday after the S&P 500 and Nasdaq Composite notched their longest winning streaks in about two years.

These gains come after about 80% of S&P 500 companies have beaten earnings estimates this season, while slowing demand means that only 59% have also topped revenue expectations. The last time this differential was this wide was during the fourth quarter of 2015, according to LSEG.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances fell last week to 7.61% from 7.86% for the largest one-week decline in over a year.

Amid the pullback, total mortgage application volume rose 2.5% last week from a year ago, according to the the Mortgage Bankers Association’s seasonally adjusted index.

Portfolio:

We enter the new trading session holding set-ups in ASAN, GEO, AI, and DKNG.  Outstanding day yesterday and we look to continue to position ourselves to end 2023 strong.  The trading markets continue to set themselves and only prove our theory regarding the pain trade to end 2023 and start 2024.  Throw in the election cycle in 2024 and we have all the ingredients in place to have a monster path for this market.  We also just learned that mutual funds are the least invested in stocks right now.  The catchup will be notable.  Early stages only brewing here.  Let's have another monster session and continue to position ourselves for whats to come.