August 27, 2024

Markets:

Stock futures were slightly lower Tuesday after a slide in technology names pressured the S&P 500 and Nasdaq Composite, while the Dow Jones Industrial Average closed at a record high.

On Monday, the Dow broke with the broader market and reached intraday and closing record highs. Meanwhile, a decline in tech stocks and a gain in less favored segments like energy signaled that investors might be rotating out of one of the market’s key drivers over the past year.

Investors are eager to see earnings from top artificial intelligence beneficiary Nvidia on Wednesday. Shares of the semiconductor firm closed more than 2% lower Monday and were marginally higher in after hours trading. Nvidia has become a key bellwether for tech stocks and AI more broadly, and investors will look toward its second-quarter results to gauge the health of the AI trade.

Stocks are trying to find stable footing after a brutal start to the month. Investors have grown more optimistic, however, after Federal Reserve Chair Jerome Powell signaled on Friday that the central bank’s next move will be to cut benchmark interest rates. Powell did not specify when, or by how much, interest rates would be reduced.

Traders are unanimously forecasting a rate cut at the central bank’s Sept.17-18 policy meeting of at least 25 basis points, according to data from the CME Group’s FedWatch Tool.

Portfolio:

Yesterday was one of the lowest volume sessions in several months!  We chopped around as we expected and stated in yesterday premarket.  Today, can see more of the same or a drop lower before we ramp higher into the close.  This is also a possible scenario we are looking for.  It's all about NVDA tomorrow after the close.  Cannot stress that enough.  We could chop right into tomorrows close.  It's OK to not trade until after NVDA. Do not need to force trades and we are happy to hold our terrific set-ups we have released.  Unless we see an A+ set-up, why force anything.  I will say in dark pool reporting yesterday massive lots going off for NVDA.  Someone is positioning for a monster move.  

Yesterday we also received AAPL's event date and rumors are swirling that AAPL is actually interested in acquisitions!  This would be massive for the tech sector if AAPL went into a buying spree.  AI cycle s real and there's a chase going on to carve out a space in this area.  

We enter todays session holding set-ups in RIOT, SIRI, MARA, ASTS, NIO, ZETA, and TSLL.  No changes needed right now.  Stay patient and do not get caught into the chop right now as traders wait for NVDA. Be on alert and let's have a great session.