July 19, 2024

Markets:

Stock futures were quiet on Friday as Wall Street looked toward to end of a week defined by rotation.

Despite Thursday’s broad sell-off, a market rotation still appears to be theme of the week. The S&P 500 has dropped 1.26%, on pace for its worst week since April. The Nasdaq Composite has slipped 2.87%, putting a six-week winning streak at risk. On the other hand, the Dow is up 1.66%, while the small cap-focused Russell 2000 has climbed 2.33%.

That divergence has been encouraging to some Wall Street pros who had worried that the market rally was becoming too dependent on a handful of massive tech stocks. A shift away from megacap artificial intelligence beneficiaries can explain the Nasdaq’s underperformance this week, as well as why the information technology and communication services sectors have led the broad S&P 500 lower.

Investors will also be keeping an eye on the political sphere. Donald Trump is ramping up his campaign as the Republican National Convention draws to a close, while President Joe Biden is under pressure from fellow Democrats to bow out of the race.

Portfolio:

We enter the last trading session of the week holding set-ups in TSLL, NIO, and GBTC. OPEX today so continue to be patient and expect swings to continue. Come Monday, we will have true price action and stability within the markets. Right now, we are adding for what we see building over the next few weeks and into tech earnings. The next catalysts is right there in front of us. The current market is also being driven by election headlines, but this always offer opportunities. We will have seasonal and historical election trades we can swing over the next few months. Truly an exciting period ahead that we can take advantage of. Be ready and stay patient today.