November 17, 2023

Markets:

Futures tied to the Dow Jones Industrial Average rose slightly Friday as investors looked to keep this month’s gains going.

All three averages are on pace for weekly gains — and that would mark their third straight positive week. The S&P 500 and the Nasdaq are up more than 2% through Thursday’s close, while the Dow is on pace for a 1.9% rise.

Those gains were sparked by tame U.S. inflation data that gave hope to investors that the worst of inflation — as well as the Federal Reserve’s tough stance on rate policy — may be in the rearview mirror.

European shares started Friday’s trading session slightly higher. The pan-European Euro Stoxx 600 index was last up by just over 1% mid-morning London time. Financial services stocks led the rise, adding 1.88%, followed by basic resources, which rose 1.79%.

Oil prices were little changed on Friday but were set for the fourth straight week of declines after hitting four month-lows in the previous session. The price of U.S. crude oil fell 5% on Thursday as inventories rose while slowing industrial activity raised concerns about waning demand.

Portfolio:

What a fantastic week it has been, and yesterday's price activity was truly delightful. From a technical standpoint, there was a case for the Q's to have taken a hit yesterday, given the potential for a short-term topping candle. Many were anticipating and positioning for a market pullback in the last couple of sessions. The longer the Q's maintain their position above $383, the stronger the possibility of a breakout, especially with Tuesday's gap serving as our breakaway gap.

The persistent chatter about a recession and an impending market downturn is still astonishing to me. The theory of the pain trade keeps gaining traction, and it's important to remember that the market is forward-looking, operating on a minimum 12-month horizon. Moreover, we're approaching an election year, adding more layers of complexity and opportunity. The potential for growth remains immense if this trend continues to develop. Let's stay focused and actively trade this market the way it deserves to be traded. There's an enormous path ahead of us.

Even though it's Friday, a day we typically avoid initiating new setups, the Queue is displaying intense activity. Be on high alert today.