February 26, 2024

Markets:

U.S. equity futures were little changed Monday after key stock benchmarks reached record highs and investors awaited inflation data slated for release later this week.

Amazon is joining the 30-stock Dow on Monday, replacing Walgreens Boots Alliance. The Dow’s holdings are weighted according to stock price, not market cap. The addition of the e-commerce giant will increase the index’s exposure to tech and consumer retail.

Stocks are coming into the final week of February on a high note after the major indexes achieved key milestones and registered winning weeks with help from Nvidia’s blockbuster earnings. The blue-chip Dow closed at an all-time high, the S&P at one point in the session broke above 5,100 for the first time, and the tech-heavy Nasdaq Composite touched a 52-week high in Friday’s session.

Investors are now watching whether the AI momentum can last as economic and inflation risks linger. With that in mind, they’re also looking ahead to the monthly personal consumption expenditures price index, the Fed’s favored inflation gauge due out Thursday.There’s a raft of economic releases on deck, including January durable orders data on Tuesday and January wholesale inventories on Wednesday.

Portfolio:

We enter the new trading week holding setups in PATH, SOUN, TSLL, and PLTR. This week we have a few monster software names set to release earnings, led by SNOW. We will begin to release trades to position ourselves for the next month and the moves we see developing. Really nice week for us and we look to exapnd this week. S&P 5200, as difficult as this might be to understand, is next level we are looking at. Above 5200 and we have sky high take off into the election cycle. This is obviously the most unlikely scenario by any analysts out there and why we think we have a chance at it. The hated rally continues! Be ready, next level opportunity is emerging!