July 22, 2024

Markets:

S&P 500 futures inched up Monday after the broad market index suffered its worst weekly losses since April last week as investors rotated out of megacap technology stocks for smaller names.

Traders also kept an eye on the U.S. political landscape after President Joe Biden dropped out of the presidential race on Sunday and endorsed Vice President Kamala Harris. Since Biden’s disastrous debate performance in June, many analysts were seeing an increasing likelihood of a win by former President Donald Trump in November.

Earnings and central bank policy will also be top of mind. Traders have been pricing in nearly a 93% likelihood of the Federal Reserve cutting interest rates during its September meeting. With this in mind, investors have been selling off the big tech winners of the market rally, in favor of rate-sensitive stocks such as small caps and industrials that stand to benefit from lower rates.

Nvidia shares rose nearly 2% in the premarket after Reuters reported, citing sources, that the company was working on a version of its AI chips for the Chinese market. Additionally, several analysts raised their price targets on the stock, calling for more upside ahead.

Portfolio:

We enter this monster week of earnings holding set-ups in GBTC, S, and NIO. This week markets will be helped by earnings to be released from TSLA, GOOG, UPS, NOW, SPOT, GE, and IBM.

We've had such a large move overnight, essentially paring the losses from Friday. We stated on Friday morning to expect swings and this week true action will be revealed once we got past OPEX on Friday. Excited to see how we hold / trade today and then we proceed with new opportunities. Friendly reminder; do not chase or trade with emotion. We trade our plan and what we see building for the next few weeks / months. Be ready today!