April 29, 2025

Markets:

S&P 500 futures held steady early Tuesday after the benchmark index notched its fifth consecutive day of gains on Monday.

Investors are bracing for a packed week of corporate earnings, with roughly one-third of S&P 500 companies scheduled to report results between Monday and Friday. Big Tech will be in sharp focus, with Meta Platforms and Microsoft set to report on Wednesday, followed by Apple and Amazon on Thursday.

In Asia-Pacific, markets traded mixed on Tuesday, following Wall Street’s lead. The movement came as the Trump administration announced efforts to soften the impact of auto tariffs, while investors continued to digest corporate earnings and monitor trade negotiations between the U.S. and regional partners.

Portfolio:

We head into the new trading day with positions in S, SOUN, TSLL, and AAPU. Despite opportunities to sell in yesterday’s session, the market held strong—signaling something bigger may be unfolding. Many traders remain overly committed to the short side, a theme we’ve highlighted since last week and reiterated in yesterday’s premarket note.

The real "pain trade" now may be higher, not lower. Market makers appear to have trapped participants into bearish positioning, setting the stage for a monster upside move. Bitcoin showed no signs of panic, and QQQ has just retested both its 2021 highs and 2024 lows—how it closes the month could be very telling!

Momentum is building, and the price action is very constructive. SPY continues to grind into the bear gap, and the recent trendline test followed by tight consolidation is classic bullish behavior—regathering strength for a potential breakout. With a heavy slate of earnings and reduced headline risk, we could be on the cusp of a major move. A record-setting rally isn’t out of the question when you see this type of price action occurring.