December 30, 2024

Markets:

Stock futures moved lower on Monday ahead of the last few trading sessions of 2024.

The major averages are heading into the yearend shy of record levels, with the S&P 500 and Dow up more than 25% and 14%, respectively, and on track for the best year since 2021. The Nasdaq has gained more than 31% in 2024.

The benchmarks are also headed for a winning fourth quarter, with the Nasdaq on pace for its longest quarterly winning streaking since 2021.

Investors are hoping that stocks will continue to rise into the year-end and the new year, and trigger what’s known as a Santa Claus Rally. The phenomenon refers to the market rising into the final five trading days of a calendar year and the first two in January. The S&P 500 has returned 1.3% on average during this period since 1950, according to LPL Financial.

However, some worries have mounted that the market may be losing momentum, with some year-end profit taking after the major averages notched losing sessions Friday.

This week ushers in a light period for economic data, with the market closed Wednesday in observance of New Years Day. Chicago PMI and pending homes sales data are due out Monday.

Portfolio:

As difficult and ugly as this price action has been over the last few session s we need to continue to remind ourselves they are manipulating this on super light volume. This is not normal trading at all the last two sessions and what's happening in premarket right now. Volume is nothing and it's all algo driven. I cannot stress this enough. What I am really interested in is where the algos step in to buy to prepare for the New Year, Come Thursday and Friday we will begin to see normal trading come back but the true pattern will be true come Next week, when full trading week and normal work week return. All traders will be back from the Holiday break and the markets will resume. Trying to remain super patient and not overreact/ Long term portfolio should use these opportunities to add to your favorite holdings.

Let's jump right into it. No major earnings reports scheduled for this week. QQQ has to close back above 524 soon. Until then we are patient. Zooming out The 5 month trend is definitely under a bit of pressure here. It wasn't really tested at all until just 5 short days ago. Now within those past 5 days it has been tested twice. My greed would come with back up the truck should the Q's dare test 500. That would be an extreme load up line but doubt we even come close to that. SPY has to hold 587. A close above 597 would once again be super bullish. Now, here's something for all of you to digest and dive into a bit and see why "under the hood" type of trading matters. Noticing a lot of quality names with multi-week consolidations above the 8-week EMA, and highs stalled at 1.236 Fib. extension of 2021/2022 corrections. Soon, we will have a massive opportunity to add with both hands and once again these sessions will be viewed as terrific days to have added.

Now, we enter the week holding setups in SOUN and QBTS. Exit points in place and we set tight patiently. Do not overreact here, allow this to work through over the next few sessions. Be on alert and ready.