October 1, 2024

Markets:

S&P 500 futures sat near flat on Tuesday, the first trading day of October and the fourth quarter, after a surprisingly strong September performance.

The S&P 500 and the Dow notched closing records in the previous session after Federal Reserve Chair Jerome Powell said the central bank is “not on any preset course” when it comes to the next steps for rate policy. He said to expect two more cuts this year — that is, a quarter percentage point each — if the economy performs as anticipated.

The Fed’s move to cut interest rates by a half-point at its latest meeting bolstered stocks’ performance as of late. Investors will now look to September’s nonfarm payrolls report on Friday, which will serve as the next catalyst for the major averages.

On the economic data front, the U.S. Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey for August is due Tuesday morning. The S&P Global U.S. Manufacturing Purchasing Managers’ Index and the ISM Manufacturing PMI readings are also slated for release.

Billions of dollars in trade came to a halt Tuesday after members of the International Longshoremen’s Association in East and Gulf coast ports went on strike. While consumers may not feel the pinch immediately, the stoppage could cost the U.S. economy hundreds of millions of dollars.

Portfolio:

Very nice close to the month and quarter yesterday. We enter the new quarter holding setups in TIGR, TNA, and LUMN. There is so much to come for us this quarter and we also have the election cycle. Cannot be any more excited for earnings, seasonal trades, and election cycle trades. Throw in the year end opportunity trade and all the ingredients is there for an exceptional quarter filled with monster opportunity. I cannot stress this enough; please do not over allocate any period of this. Stay focused and disciplined no matter how great a period might seem. Over allocation is how you hurt your account. The next several months will provide so much opportunity, do not force anything. Trying to keep a low frequency bias but completely understand these moves making it tough!

For today, watching the first trading session of the quarter and month with patience and understanding we have a few factors today; Fed speakers, data, VP debate night, and technically SPY now in range with 575 the next catalyst. But we have a few sectors really showing outstanding price activity. Be ready, we are positioned well!