January 16, 2024

Markets:

Stock futures inched lower Tuesday as rates ticked higher and Wall Street pored through the latest batch of fourth quarter earnings. Investors also awaited more data that can give better glimpse into the state of the American consumer.

The benchmark 10-year Treasury note yield rose 5 basis points to trade just under 4% at 3.999%. The 2-year and 30-year note yields were also higher. Those moves come after central bank officials in Europe talked down rate cut expectations.

Several major banks released their quarterly earnings Tuesday morning. Goldman Sachs reported better-than-expected profit and revenue, leading shares to gain 1% during premarket trading. Shares of Morgan Stanley added nearly 2% after the bank posted a revenue beat in the fourth quarter.

Investors are also looking ahead to December retail sales data out Wednesday, which could fuel recessionary fears and concerns about economic growth if U.S. consumer spending sees a cooldown.

Portfolio:

We enter the new trading week holding set-ups in PATH, PLTR, NVAX, SOXL, and IONQ. We will be looking to add new set-ups, especially with the current market price activity taking place. Right now, S&P in ping pong range. Bulls need another clear break from 4800 – 4850 and the Bears need to break us below 4700 and hold it. With all the "Bearish" sentiment being received now and the noise getting increasingly louder for a bearish call, it amazes me how they continue to miss what's building technically within this market and the possible monster move ahead. People really need to focus on the Nas chart and what's forming there. With earnings looming, that pain trade can become super explosive. Silence the noise and follow the patterns. Be ready this week and be ready for new set-ups. Should be an outstanding period ahead.