April 15, 2024

Markets:

U.S. stock futures rose on Monday, rebounding from last week’s sell-off following strong Goldman Sachs earnings and hopes that the conflict in the Middle East won’t further escalate.

Futures tied to the Dow Jones Industrial Average climbed 220 points, or 0.6%. S&P 500 and Nasdaq-100 futures added around 0.5% and 0.6%, respectively.

Iran launched drones and missiles on Israel on Saturday night, marking the first direct attack on Israel from Iranian territory. While the majority of the threats were intercepted, concerns of retaliation remain.

Gold futures advanced slightly to trade at $2,376.30 an ounce. Bullion hit a record level last week and is up around 15% this year as investors seek safety from sticky inflation and geopolitical tensions.

But oil prices fell despite rising in the last few weeks prior to the attack amid growing Middle East tensions. That, along with the potential for Israel’s response to be measured given the country thwarted the attack, offered positive signs for traders.

Portfolio:

We enter the new trading week holding set-ups in ACB, SOXL, SMTC, BAC, TSLL, and IBIT. Current SPY range we are looking at is 512 – 514 area. For us, we have extreme interest here on either a breakout or breakdown area. For a breakdown, not a change in trend but for next level buying opportunities. 508 becomes next key line. These areas for the SPY have shown to be outstanding opportunities to add. But today is a terrific example of fear mongering that goes on in social media and certain news outlets. You would have thought World War 3 was beginning Saturday and we were waking up to 0 today. Then quickly yesterday you see stock markets around the world opening with positive moves and commodities moving. Do folks not really think this is all not priced in? Do you think Iran and Israel announcing in advance their "attacks" not show what really is going on here.  Plus, remember, after the initial drop in war, it becomes one of the most bullish opportunities in a market.  It's sad to say, but war is typically bullish for markets.  

Let's focus on the markets and the opportunities we have now. A few monster earning reports coming this week but most notable is ASML on Wednesday. Chips and AI back in focus. Monster opportunity ahead with earnings over the next several weeks. Let's take full advantage of this after the past month ho-hum roller coaster type of market action. The real opportunity of Q2 is now making its way towards us.  Let's have a great week.