January 2, 2024

Markets:

Stock futures were lower Tuesday, the first trading day of the year, as interest rates rebounded slightly and investors took some money off the table following a surprisingly strong 2023 that saw the S&P 500 rally 24%.

Apple shares led the pullback after Barclays downgraded the member of the Magnificent 7 market leaders basket to an underweight rating.

The stock market finished 2023 with a bang, as the S&P 500 climbed for nine weeks in a row to end the year, notching its best weekly win streak since 2004. Risk assets enjoyed a big relief rally as the economy remained resilient and inflation cooled, while the Federal Reserve signaled an end to rate hikes and forecasted rate cuts later this year. The market also endured a regional banking crisis as well as wars in Ukraine and the Middle East.

After a stellar 2023, Wall Street strategists see much lower returns for stocks in the new year. Some are warning about a weaker economy and more tepid consumer spending, which could translate into slower earnings growth for Corporate America.

Portfolio:

Happy New Year everyone! Let's have another MONSTER year ahead. Silence the noise and any premarket activity right now. We love trends more than anyone and also momentum type trading. So much money can be made with these factors in play. However, the headlines this morning are absolutely silly. These are the same headlines that caused so many to lose money in 2023 and continued to chase a "downturn". These headlines to start 2024 only magnify the opportunity we will have ahead, especially into an election cycle and all that brings us with trades. These headlines; "After a stellar 2023, Wall Street strategists see much lower returns for stocks in the new year. Some are warning about a weaker economy and more tepid consumer spending, which could translate into slower earnings growth for Corporate America", are honestly making us and a few others laugh. These are the same people that wrote of recession and market selloff to start 2023 and tried to chase a downturn. Do not fall victim to these headlines.

We enter the new trading year holding set-ups in IONQ, ALT, NIO, TSLL, and IQ.  Our positions are set-up nicely for January, but the real excitement is for what's occurring in the queue and the velocity of force we are seeing. What is being presented over the last two sessions is no way representing what larger traders are positioning themselves for with monster lots being placed. Unless our trend breaks in the S&P. no concern for us. Do not let a few swings daily shift your focus. Be ready and be ready to have a monster 2024.