September 10, 2024

Markets:

Stock futures edged higher on Tuesday after the major averages rebounded from their worst week in 2024.

Cloud platform company Oracle surged about 8% after posting fiscal first-quarter results that topped expectations. Oracle also announced a partnership with Amazon Web Services to provide database services.

These moves come as investors bet that a widely anticipated interest rate cut at the Federal Reserve’s Sept. 17-18 meeting could help assuage concerns over a weakening economy. August’s payrolls report, which came out last Friday, reflected growth of 142,000, below economists’ expectations. The results helped fuel a sell-off that day.

Traders have their eyes on two key economic reports that will likely be the next catalysts for stocks. The consumer price index report for August is due out Wednesday, followed by the producer price index on Thursday.

September is historically a weak month for equities. Investors remain cautious about seasonality’s effect on stock performance as well as uncertainty around the approaching U.S. presidential election on Nov. 5.

European stocks were mixed on Tuesday.

Portfolio:

We enter today's session holding set-ups in WULF, NIO, and TSLL. We anticipate this market to behave like this for another week possibly as we head into Federal Reserve’s Sept. 17-18 meeting. APPL's event yesterday was a bit underwhelming, however, you clearly see the super cycle being created in AI and the role AAPL will play. Cannot express enough the excitement we feel for AI, tech, and the possibilities over the next few years. We will state it again; early stages for this cycle. Semi's are a bargain right now for longer term investors. Keep in mind around October begins the cycle for semi's historically where they begin to run higher once again.

As a reminder of the current range, we are in. Higher lows continue to be printed. Could see a range between 536 to 547 on SPY until we have the Fed rate decision. Currently, trading above 548 on the SPY. Pretty surprised by this and curious to see if it holds. If we do and we break higher, market once again moving on it's own terms and not waiting for the Fed. We mentioned yesterday the Q's and where the 200 sat. Yesterday and today, it continues to build from it, almost as if large funds have front run the move. Again, curious to see if this builds higher from here.

We mentioned late last week the importance of NVDA ad watching it's neckline on the charts being posted. It's responded very nicely. 102 – 103 level continues to be defended and continues to bounce nicely. Watching it above 107 is a bit surprising this early, should it dare get above 110 and hold it, very bullish once again for semi's and NVDA.

So many great set-ups continue to build. Just be patient here. The reward will be there.

Be on alert today. Be patient. Be ready!