April 22, 2024

Markets:

Stock futures pushed higher Monday as Wall Street looks to find its footing following a steep sell off for tech companies, which face a key test this week.

The S&P 500 and Nasdaq Composite fell 3.05% and 5.52% last week, and are each on six-day losing streaks. The Nasdaq fell 2% on Friday alone, with chip giant Nvidia sinking 10%, leading a slew of losses for Big Tech names.

The Dow, which has less tech exposure than the other two benchmark averages, was little changed on the week.

The moves higher in futures comes ahead a potentially big week for earnings, with the focus on Magnificent Seven tech companies.

Companies including Tesla, Meta Platforms, American Airlines, Microsoft and Alphabet all set to report in the week ahead. Tesla reports after the bell Tuesday, Facebook-parent Meta is on deck Wednesday, while Apple, Intel and Microsoft all report Thursday.

The struggles for equities come as recent inflation readings have diminished hopes that the Federal Reserve will cut rates several times in 2024.

Portfolio:

We enter this monster trading week holding set-ups in SOXL, PATH, S, and IOT. This week, it's about earnings and the narrative can quickly switch. It's been a poor three weeks of price action in the market with constant swings. So far, gaps have been faded and it'll be interesting to see if we can hold today's gap. 497 on the SPY held below 497 but we now have a bounce in play. Need to see how this reacts today and especially after a few earnings reports this week. Keep this in mind as we enter one for the biggest two-week periods for the tech sector with earnings. The Tech sector’s 10-day advance/decline line now sits at one of its most extreme oversold readings of the over the last 15 months. I think you understand the probabilities here and the explosiveness to the upside that can take place. The market will be heavily influenced by earnings now. Even the press releases regarding Iran and Israel have slowed with a narrative of World War 3 trying to be pushed. Be on alert, it should be an exciting two weeks ahead that will set the tone for months to come.