April 8, 2024

Markets:

Stock futures were flat Monday after the market suffered a pullback last week as 2024′s rally took a breather.

The market did end last week on a positive note, however, after a stronger-than-expected jobs report Friday. The surprising gain in payrolls gave investors hope that a strong economy could continue to support corporate earnings growth, even if it means higher interest rates for longer.

For further clarity on how successful the Federal Reserve’s fight against inflation has been, investors are eagerly waiting for readings for March consumer and producer price indexes later this week.

Investors are also grappling with rising bond yields and oil prices. The benchmark 10-year Treasury yield surged nearly 20 basis points to last week to about 4.4%. U.S. crude oil touched $87 amid geopolitical tensions.

Bank of America economists believe Wednesday’s inflation report should show a moderation in price pressures, providing confidence to the Fed for a rate cut in June.

 

Portfolio:

We enter the new trading week holding a few runners right now in premarket to start the week. We enter the week holding set-ups in IBIT, BAC, TSLL, IOT, HMY, and IONQ. Bitcoin is running which will lift IBIT. Queue is igniting with force right now, the strongest readings in weeks and we look forward to see if confirmation on these potential set-ups is confirmed. The next few weeks will set the path for the S&P short term. The pain trade remains and last two weeks the markets have renewed the bears interest in re-shorting the market once again. The chase for calling tops continues to amaze us over the last 14 months or so. Eventually it'll happen but most fail to realize the true move developing and the cycle forming. We will not! Be ready.