August 7, 2024

Markets:

Stock futures were higher on Wednesday after Wall Street snapped a three-day string of declines.

During Tuesday’s regular trading, the major averages ended three consecutive days of declines. The S&P 500 and the Nasdaq Composite each advanced 1%, while the 30-stock Dow
added nearly 300 points. On Monday, the Dow and the broad-market S&P 500 posted their worst session since 2022, fueled by recession worries and the unwinding of the yen carry trade.

Earnings season continues in earnest on Wednesday with Disney and CVS Health reporting before the opening bell. Results from Shopify and Novo Nordisk are also on deck.

European markets opened higher on Wednesday, with the pan-European Euro Stoxx 600 adding 0.37%.

Bank of Japan deputy governor says central bank won’t raise rates while markets are unstable. The Bank of Japan won’t raise rates while markets are volatile, deputy governor Uchida Shinichi said in a speech Wednesday.

Japanese markets have whipsawed this week, seeing both their worst sell-off since the 1987 Black Monday crash as well as the best day since October 2008.

Portfolio:

Nice rebound yesterday and we look to see it follow through today. We enter the session holding setups in ASTS, NU, SOXL, and TSLL. We want to add as queue is once again igniting with force but trying to be super patient and making sure we reclaim a few trend lines. But, as expected when we wrote our premarket on Monday morning, headlines are once again changing along with the over feel for the markets. This is why we always state do not get caught up with the day to day moves and try to plan for whats developing over a 3 to 21 day trading period. Lots of carnage was caused by this "growth scare". It was a rough 3 days of selling pressure but it did not break the markets technically. We did not even break April lows. Yesterday price action was very constructive and now we can build here but it depends on the next few sessions.

The headline that angered most retail yesterday:

"JP Morgan says Institutions bought the dip while Retail panic-sold aggressively.

Retail sold -$1 BILLION, Institutions bought +$14 billion."

Please remain patient here. I cannot stress this enough. Let's build now off this area and really end 2024 in a monster way!