January 22, 2025

Markets:

Equity futures jumped on Wednesday, with the S&P 500 approaching an all-time high again, as technology stocks like Oracle and Nvidia rallied on artificial intelligence optimism and shares such as Netflix and Procter & Gamble gained after strong quarterly results. President Donald Trump on Tuesday announced a joint venture dubbed “Stargate,” with OpenAI, Oracle and Softbank to invest $500 billion in artificial intelligence infrastructure in the United States.

Netflix shares soared more than 14% after the company surpassed 300 million paid memberships. It’s fourth-quarter earnings and revenue also topped analyst expectations. The streamer’s results got a boost from hit series “Squid Game” and live sporting events such as the Jake Paul and Mike Tyson boxing match.

Stock futures were higher even after President Donald Trump said Tuesday he’s considering a 10% tariff on China beginning as soon as Feb. 1. That comes after he mulled levies on Canada and Mexico earlier in the week.

President Donald Trump said he’s open to Elon Musk or Oracle’s Larry Ellison buying TikTok.

Portfolio:

Yesterday's monumental infrastructure announcement by President Trump underscores the impending tech revolution in the United States and globally. A massive investment cycle is taking shape, presenting incredible trading and investment opportunities over the next few years. Pay close attention to market flow and price activity—it’s been highly indicative. Notably, TSLA and GOOGL have experienced significant upside call volume for the coming year. Expect two major moves here soon.

As we enter Q1 earnings season, this surge of investment is especially exciting. The outlooks from tech companies reporting over the next two weeks will offer deeper insights into the transformative future being shaped by AI-driven technologies. The momentum kicking off the new year provides a clear picture of the overarching themes for 2025 and highlights the sectors primed for growth.

Today, we head into the session holding positions in KODK, PSQH, and AAPU. Nice profit booked yesterday in AAOI.  We anticipate adding new opportunities. Our queue is igniting with strength and we love this type of price action and momentum.

Our previously discussed QQQ trend lines have played out as expected. When the broader sentiment was short term bearish at 500, we outlined the breakout path above 513, 520 and 525—and here we are, now at 529, pressing 530. For SPY, the next key level to test is 611, with 603 acting as short-term support.

Stay focused on the trend! There’s no need to fight the current bull cycle—it’s clear there’s significant upside potential remaining. We’ll provide updated trend lines by the end of the week as market flow and price activity continue to evolve. For those who doubted this rally when QQQ sat at 500, let this be a lesson: ride the trend! The bull run still has plenty of room to run.  Few understand that this is still fairly early in the cycle.