February 2, 2024

Markets:

S&P 500 futures rose marginally on Friday morning as a trio of megacap tech titans reported results and investors digested a stronger-than-expected jobs report.

Futures tied to the broad market index climbed about 0.2%, while Nasdaq-100 futures added 0.5%. Dow Jones Industrial Average futures ticked down 72 points, or 0.1%.

Futures cut gains, however, as Treasury yields jumped on the back of a much stronger-than-expected jobs report. The U.S. economy added 353,000 jobs in January, well above the Dow Jones estimate of 185,000.

Shares of Meta popped 17% after the social-media giant defied analysts’ expectations. The Facebook-parent also announced it will pay a quarterly dividend for the first time, and it authorized a $50 billion share buyback program. Amazon shares jumped 6% on fourth-quarter beats. However, Apple
slid 3% after the company posted a decline in sales in China during the fiscal first quarter.

The moves follow a rebound session on Wall Street. The major averages gained around 1% each, a day after selling off on the back of the Federal Reserve signaling that a March rate cut was unlikely.

Portfolio:

We enter the last trading session of this wild week holding setups in SOFI, IONQ, SKLZ, STNE, and IOT. This week has been the ultimate rollercoaster ride, not just with price activity but headlines. Two days ago you would think the market is crashing based on headlines and price activity. Now, back to the pain trade developing and the hated move higher. Whether people want to see it or not there is tech revolution happening with AI, Cloud, Chips, and Cyber. This is why we continue to state do not chase the day to day moves but rather follow the trend and plan accordingly. There will be ugly sessions, but the overall move is clear. NVDA for example touched $606 on Wednesday, it is trading above $640 right now. SMCI touched $505, it's challenging $600 in premarket. AMZN was down to $154, it's trading above $170. We won't even get into META. Look at the turn in AMD and now MSFT building. These names and moves are still in the early stages, as hard as that might seem.  Do not fight the trend!

We now got through the toughest week we will face with regards to earnings and data points for Q1. We now proceed with price action and trends. Early next week this will develop with a clear path. And as we stated a few days ago, monster opportunities to be developed from this so be ready! This is the time to take advantage of.