April 17, 2024

Markets:

U.S. stock futures were higher on Wednesday morning after the S&P 500 notched its third straight day of losses.

The moves come after Federal Reserve Chair Jerome Powell said that the Federal Reserve needs to see more progress on the inflation front before the U.S. central bank is likely to begin cutting rates.

UBS anticipates the U.S. 10-year Treasury yield will eventually fall back below 4%. The Wall Street firm said the Federal Reserve will eventually have to ease, even after Fed Chair Jerome Powell on Tuesday warned interest rates may have to stay higher for longer. The 10-year yield was last above 4.6%.

At 2:00pm Beige Book release.

Earnings tomorrow we get a monster report in TSM prior to the open!

Portfolio:

We enter the new trading day with markets looking to run higher in premarket. We enter the session holding set-ups in NVDL, SOXL, and IBIT. Here's what we are watching early on for our technical folks; QQQ a pop above and hold of 433 and we can be setting up for a multi day run higher. SPY we are in range right now between 503 – 508. 512 is a key line for the SPY. We will begin to receive monster earning reports over the next two weeks. The narrative of Israel / Iran should quickly change. But the headlines and the announcement of plans is really something else. Yesterday, when Powell began to speak, we received a headline that Israel's cabinet has decided on a response. If folks truly wanted war, these type of announcements would not be taken place.

Now, everyone knows we love the chip sector and firmly believe in the AI revolution that is beginning to take place. NYMO indicating a massive bottom and oversold reading. NVDA start to see massive call flow yesterday for 900 plus. SMCI with a massive upgrade to 1500 yesterday. This might be your leader in Q2 once again. Watch this sector and continued response.

Be ready today but stay patient. They continue to whip this around in range. It'll break soon enough, this is the same type of price action we saw in October before a massive move.