January 8, 2024

Markets:

U.S. stock futures were lower Monday morning after the major averages kicked off 2024 with a down week, as traders kept an eye on Boeing shares.

Boeing fell more than 8% in the premarket following the temporary grounding of dozens of Boeing 737 Max 9 aircrafts for inspections, after a section of an Alaska Airlines flight blew out.

Wall Street is coming off its first losing week in 10 as mega-cap tech stocks such as Apple underperformed, and Treasury yields rose. The Dow Jones Industrial Average dropped 1.5% for the week, and the S&P 500 slid 0.6%. The tech-heavy Nasdaq Composite posted its worst weekly performance since September, falling 3.25%.

Apple shares slid roughly 6% last week. The yield on the 10-year Treasury yield swung back above 4%.

Markets consolidated after the year-end rally, following a dovish pivot from the Federal Reserve, had investors concerned equities are now overbought. A hot December jobs report, as well as Fed meeting minutes this week that indicated elevated uncertainty around the path of rate cuts, added to those worries.

The latest corporate earnings season will kick off Friday with results from big banks Bank of America, Citigroup, JPMorgan Chase and Wells Fargo.

Traders will also keep an eye on Washington as lawmakers try to avoid a government shutdown. On Sunday, congressional leaders announced a deal establishing a $1.59 trillion in top-line spending.

Portfolio:

We enter the new trading week holding positions in PLTR, NVAX, IOT, SOXL, IONQ, NIO, and IQ. Turbulent start to 2024 but expected on lighter volume. With earnings season kicking off on Friday and traders now beginning to position themselves for what 2024 will bring, we have our runway developing and technically, this market is still in line with our trend channel and theory. I truly feel sorry for folks who get shaken out after a week or two in by this market to only miss the move afterwards. The one's who chase the instant gratification always and never plan for the moves are the ones who always lose. We now begin to position ourselves for the month to come and the trend to follow. The time has come. Get ready and remain patient here. Certain sectors have now begun to trigger, and the queue is igniting with force now.