February 7, 2025

Markets:

Stock futures were little changed early Friday as January’s big jobs report loomed.

Amazon lost more than 2% in premarket trading, weighing on sentiment. Guidance from the e-commerce giant disappointed investors, as Amazon called for revenue growth of 5% to 9% in the first quarter — its weakest growth on record. The outlook overshadowed top- and bottom-line beats in the fourth quarter.

Traders’ focus is on the January jobs report, which is slated for release on Friday at 8:30 a.m. ET. Economists surveyed by Dow Jones are expecting nonfarm payrolls growth of 169,000 for the month, which is lower than the 256,000 jobs added in December. The unemployment rate is expected to hold steady at 4.1%.

Stocks have managed to rebound from Monday’s sell-off, which came after President Donald Trump over the weekend announced 10% tariffs on China. He agreed to pause 25% levies on Canada and Mexico.

Portfolio Update:

What a week! As we head into the final trading session, we’re holding setups in KODK, TSLL, SOXL, S, and ASAN. We often talk about fear and the narratives being pushed in the market. One thing that has stood out over the past several months is the widespread lack of understanding regarding AI and its potential.

The investments pouring in—hundreds of billions over the next year—along with companies' commitments through CAPEX spending, signal a revolution underway. Yet, despite this, some still fixate on valuations as if they’re the sole measure of a company’s worth. Let’s not forget a fundamental truth: the market is a forward-looking vehicle.

The best stocks to buy may be the ones currently facing skepticism or those consistently showing strong price action and positive flow. If you're stuck analyzing past earnings reports, you’re likely missing some of the biggest moves. What truly matters is the potential the future holds.

This is a friendly reminder to tune out the noise. Analysts, reporters, and skeptics who focus solely on valuations continue to miss this massive shift. Fortunately for them, it’s still early. The chase has yet to begin.

Looking ahead, 2025 has the makings of a banner year. Once we navigate tariffs, policy changes, and other macro factors, the focus will return to what leading companies are actively demonstrating—through massive investments—the buildout of an entirely new AI-driven ecosystem.

In ten years, our world will look vastly different thanks to technological advancements. We’re in the early stages of a transformational cycle, and it’s incredibly exciting to be part of it from the start. Why is this important?  Because it leads to momentum type of trading and provides a cycle to make massive amount of money from.  Let's have a banner year!