April 18, 2024

Markets:

Stock futures climbed Thursday as Wall Street attempted to recover its footing following another losing session for the S&P 500 and the Nasdaq Composite.

Wednesday’s market pullback adds to a more difficult second quarter on Wall Street. All three major indexes are lower so far in April, in stark contrast to the stronger-than-expected market performance seen in the first quarter. The Dow, S&P 500 and the Nasdaq have also closed below their respective 50-day moving averages.

On the economic front, initial jobless claims data will be due on Thursday morning, and the existing home sales report for March is also out.

Portfolio:

Patience is required right now as we are in a tough range. The last 3 to 4 weeks have been the most difficult for traders in over a year but this is coming to an end very soon. Historically, these ranges only last before they break and the waterfall of opportunity opens; either to the downside or upside. We firmly believe this is a small setback in a bull market cycle. We now see massive divergence building in the SPY and VIX. The range right now, especially for the QQQ's is extremely choppy. Just please be patient here. We've had some great price set-ups that have been chopped. They continue to do this to both sides of the trade. The interesting thing you saw once again yesterday was monster bullish trades being executed. Large put sales and large blocks of upside calls being purchased across multiple names that move the markets. A break and hold below 49 on the SPY would have our attention to the short side. But right now, focus is on an opportunity to buy on the low. Tomorrow is options expiration as well. We expect swings and a new pattern to emerge. Typical price action into and after options expiration. Let's see what cycle emerges here ad keep in mind the monster earning reports coming to us over the next two weeks.

We enter the session today holding just twp set-ups in TQQQ and IOT..