January 23, 2024

Markets:

U.S. stock futures were little changed Tuesday after the Dow Jones Industrial Average surpassed 38,000 for the first time ever.

Monday was a notable trading session for the major averages. The 30-stock Dow advanced more than 100 points, or 0.4%, to hit a new record and close above 38,000 for the first time. The S&P 500 rose 0.2%, also hitting a new all-time high. The Nasdaq Composite gained 0.3%.

Those moves add to the S&P 500′s advance after the broad market index officially reached bull market territory on Friday, topping both its previous intraday and closing all-time highs from January 2022.

Chinese authorities are considering a package of measures worth 2 trillion yuan ($278.53 billion) to stabilize its stock markets, Bloomberg reported.

Citing people familiar with the matter, Bloomberg reported that this would come from the offshore accounts of state-owned enterprises.

Chinese Premier Li Qiang recently chaired a meeting of the country’s cabinet, which called for taking “stronger, more effective measures to stabilize the market and improve market confidence.”

Hong Kong’s Hang Seng index jumped 2%, powered by tech stocks, but the mainland Chinese CSI 300 was marginally below the flatline.

Portfolio:

Outstanding start to the week yesterday and we are super light in position holding only 3 set-ups; SOXL, SOFI, and AEHR. Queue continues to ignite but we want to just be a bit patient here and allow price to materialize a bit more. We will begin to receive Monster earning reports over the next two weeks that will drive new set-ups. We expect outstanding opportunity from this. We would not be surprised at all to see this market run higher into March, maybe even longer. But we do expect the market to settle a bit into the rate decision in March. Maybe even a slight pullback (an opportunity to add stocks at cheaper prices), and then begin a new cycle / push higher with the election cycle to begin around June. This election cycle is always one of our favorites to trade. It provides so much opportunity. The one key component that can continue to drive this market will be the Nasdaq. The AI cycle is just beginning and it's real. What we continue to see is numbers that cannot keep up with the demand and there's a race at development in this area. Should earnings in Q1 AND in Q2 continue to provide this theory, then we are in a early bull stage for this sector. Just keep that in mind and do not fight the trend! Let's have a monster 2024, it's already off to a very nice start!