April 3, 2024

Markets:

S&P 500 futures edged lower Wednesday, as Wall Street’s struggles to start the second quarter of 2024 continued.

ADP data released Wednesday morning showed private payrolls grew more than expected in March. It offered another sign of resiliency in the economy and sent bond yields higher.

Atlanta Fed President Raphael Bostic said he only sees one rate cut this year, occurring in the fourth quarter. He’s one of several central bank officials including Chair Jerome Powell expected to speak at events around the country on Wednesday.

Those moves build on Tuesday’s losing session, during which sticky inflation data and some strong manufacturing figures appeared to worry investors that the Federal Reserve will take longer to cut interest rates. The rate on the U.S. Treasury 10-year note touched its highest level since November on Tuesday, while oil prices surged to their most expensive price going back to October.

Still, some market observers remain optimistic overall on equities, saying stocks are due for some consolidation after a strong start to the year. The first quarter, which concluded last week, was the best for the S&P 500 since 2019.

Portfolio:

We enter the new trading session holding set-ups in TPST, IOT, BAC, IONQ, TSLL, and IBIT. Queue is igniting with force since yesterday afternoon but trying to be patient with adding set-ups here. As we stated in yesterday after the close wrap-up, so much is happing under the hood for this market. Technically, this market still remains in outstanding shape for a consolidation and go type of move. We have ISM and Powell today. Stay patient here. As a reminder and we will continue to state this; This is when the market removes undisciplined participants. We’ve already seen it over the last week. It’s the shake out of the weak before the run-up. The best runs come after cleanse periods. This is having been true in Mid-January, again after the October period in 2023, as well in the summer months of 2023. Here we are again. It's the shake out before the grand move. Cannot stress this enough. Unless we break certain technical lines, silence the noise of everything else or else you will only chase the move.  Be ready today.