October 9, 2024

Markets:

U.S. stock futures edged lower on Wednesday following a positive session for the major indices.

Shares of Alphabet dropped over 1% as the Department of Justice signaled it may consider a potential breakup of Google. Meanwhile, U.S.-listed Chinese stocks also struggled as investors locked in profits from the recent stimulus-driven rally.

Wall Street's strong performance was supported by gains in the tech sector and a pullback in oil prices, reflecting increased optimism that the Federal Reserve can achieve a soft landing. Last week's jobs report, which highlighted continued labor market strength, added to this sentiment.

Despite the positive momentum, markets may experience further volatility, especially given that October is historically the most turbulent month of the year, and the U.S. presidential election looms on the horizon.

On the economic front, investors are awaiting the release of the latest Fed meeting minutes on Wednesday at 2 p.m. ET. Additionally, the September consumer and producer price index data is set to be released on Thursday and Friday, respectively.

Earnings season kicks off Friday with major banks JPMorgan Chase and Wells Fargo reporting.

Portfolio:

We had a strong session, further reinforcing our market outlook. Today's focus will be on the Beige Book, and we're starting to see more traders positioning themselves ahead of Q4 earnings season, which begins this Friday.

It's important to remember—your biggest opportunity in this market has yet to materialize. Once we get through the elections and a period of digestion, we anticipate a market cycle that few expect. Our system is ready to capitalize on these emerging opportunities.

We enter today's session holding positions in NVAX, TIGR, TSLL, and APA. Bullish setups are forming across the market, particularly in tight bull flag patterns, signaling continued strength. A less obvious but very bullish indicator is the activity in call options for industrial stocks, which shows an upward shift in positioning. This sector is worth watching closely.

As for the QQQs, we’ve been tracking this ETF as a barometer for overall market direction. It’s been consolidating tightly and appears ready for a significant year-end move. Without the election uncertainty, we believe the Qs would already be surging. Keep a close watch on this over the next month.

Lastly, stay patient. Avoid chasing short-term market moves, as it tends to hurt accounts over time. Stick with the trend and market cycles. Chasing headlines has led to unnecessary volatility in recent years. Stay focused and be prepared!