December 4, 2023

Markets:

Stock futures were lower after the S&P 500 closed at a new 2023 high following a five-week win streak.

Futures on the Dow Jones Industrial Average shed 0.2%. S&P 500 futures were down 0.3%. Nasdaq 100 futures inched 0.37% lower.

The large-cap equity index posted its highest close since March 2022 on Friday, bringing its year-to-date gains to almost 20%. The blue-chip Dow has also advanced for five weeks straight and is up 9.4% for the year. The tech-heavy Nasdaq Composite has popped 37% in 2023.

The rebound in stocks since October came as investors increasingly bet that the Federal Reserve will start cutting interest rates next year. Investors maintained this belief last week even as Fed Chairman Jerome Powell’s tried to tamp down rate-cut expectations, saying it’s “premature” to anticipate easing in policy.

Investors are awaiting the November jobs report, scheduled for release on Friday, for confirmation the Fed is done hiking rates. Economists polled by Dow Jones expect the economy to have added 190,000 payrolls.

Bitcoin topped $40,000, a new high for the year as investors get bullish ahead of possible U.S. approval bitcoin exchange-traded fund and as traders bet the Federal Reserve will begin cutting rates next year.

Spot gold prices notched a new record on Monday for a second straight day, rising to a high of $2,110.8 per ounce before giving up some gains. It is currently trading at $2,084.28.

Portfolio:

New trading week and beyond excited! Absolutely love what's occurring in a few sectors and the price activity that continues to build. We also see headlines this morning with continued doubt regarding this rally and if sustainable. We love to see this as it continues to build on the notion of the "pain trade" and the "pain trade" being higher. Too many continue to want to call tops and short this market. It's absolutely incredible to see this and see them continue to fight this powerful trend. Rather than looking for and embracing the opportunity, they would rather miss this and fight it.   Keep in mind, funds are underinvested right now. The rush for performance has not even begun yet. The next few weeks should be very telling for this market, and we are only a few months away from our full-blown election cycle and what this cycle provides us from a market perspective that we spoke upon a few weeks ago.

We enter the trading week holding positions in FIGS, IONQ, and LMND. We want to be patient today a bit and allow price to materialize. Queue continues to ignite and then we will proceed with new opportunities. Let's have another monster month ahead!