January 30, 2024

Markets:

Stock futures dipped Tuesday morning as investors analyzed the latest corporate earnings with the Federal Reserve policy meeting on the horizon. Traders also awaited results from major tech companies.

Major tech reports slated for the afternoon, including Microsoft and Alphabet. These companies, which are part of a group known as the “Magnificent 7,” have been closely watched by market participants after driving up the S&P 500 with their outsized gains. Amazon, Meta and Applewill post their quarterly financials later in the week.

Wall Street is coming off a winning session that brought the Dow and S&P 500 to their sixth record closes of the year. Despite those notable finishes, the technology-heavy Nasdaq Composite saw the best performance of the three major indexes, climbing more than 1% in the session.

Traders will watch for updates out of the Federal Open Market Committee’s two-day policy meeting beginning Tuesday. The fed funds futures market has priced in an approximately 97% probability that the central bank will leave rates unchanged during its Wednesday announcement, according to the CME FedWatch tool.

Portfolio:

Monster day yesterday technically for this market and this hated move continues! Calls for overbought, market top, etc.. and whatever these "pro"s continues to sate is becoming laughable now. They continue to refuse to see what is actually occurring the cycle beginning. Whether folks want to see it or not, we are in the early stages of a bull market with AI / tech. Just listen to the call from SMCI last night. The demand they noted and how they expect this to last for years! We've bene on this path since early summer. Just go back to our commentary. The pain trade continues! Silence the noise. Follow the trend. See exactly what these notable companies are stating on their calls and the demand they speak of. SMCI specifically stated, "years". They raised their outlook by billions, not millions but billions! Pay attention to what really matters and not some talking head on cnbc with an agenda for their firm.

We enter the new session locked and loaded with positions in STNE, SOXL, and IOT. We begin to receive monster earing reports after today's close and through Thursdays close! Such an exciting period that will set the tone and stage for the next several weeks. How we respond and follow through will be important for the short term. But the overall picture is clear and we cannot wait to hear the outlook from MSFT, GOOGL, AAPL, AMD, and others we closely follow for insight. AMD is a bit of a wild card. Not really sold on their product line, the true champion will be NVDA and others like MU, LRCX, etc.. If AMD also reports with wild demand, it can be lights out across the board for the chips. And I mean that in a very positive way. Cannot wait for their report. We also receive MSFT and GOOGL, two monsters. MSFT & GOOGL will have an important message / guidance as well with AI. Two true drivers for this sector. But the semi's really have me the most intrigued right now.

Be ready today! Let's have a great session.