August 30, 2024

Markets:

Stock futures climbed Friday as investors looked to end a volatile month of trading on a high note, while assessing crucial inflation data closely watched by the Federal Reserve.

The personal consumption expenditures price index, the Federal Reserve’s preferred inflation gauge, rose 0.2% on a monthly basis and 2.5% from a year ago, coming in line with estimates from economists polled by Dow Jones. Excluding food and energy, it also rose 0.2%.

As August’s trading winds down, the S&P 500 is on pace for a nearly 1.3% gain during the month, while the Dow is on track to add 1.2%. The Nasdaq Composite is the sole loser of the three major averages, off by nearly 0.5% this month.

The major averages suffered a steep sell-off at the start of August, with the S&P 500 losing as much as 7.3% before recovering. The Dow and Nasdaq were down as much as 5.4% and 10.7%, respectively, at their lows this month.

Portfolio:

Last trading session of this outstanding month and now we get to focus on setting ourselves up for year end movement and cycle.  Labor day always signals the return of volume!  This week has been pretty terrible with volume and how quickly algos were able to move stocks and chop them around. It's very difficult to trade chop but think we managed it well over the last two week. But, we welcome Labor Day and the return of traders / volume come next week! No adjustments needed with our current holdings of NIO, SIRI, MARA, TSLL, ZETA, and RIOT.  As many of you know, we love the semi sector.  For our technical traders, take a look at SMH.  Bullish flag consolidation firming up in SMH yesterday and the first constructive action we've seen in this sector in several weeks. This could be very positive for the end of year cycle that occurs in chips.  

With NVDA earnings and heavy data points behind us now, we cannot wait for what next week will bring and the opportunities to come.  Remember what we stated in yesterdays premarket, "SPY, loved all the bears calling for a market top yet once again when it hit 554. Amazes us but I think it’s better to call it, a Higher Low! SPY now trading at 560 and building. The longer we base here (554 – 562 level) the higher the explosion we will have."   This continues to build!!  

Let's end the week and month strong.  Queue is igniting but want to be a bit patient adding ahead of a long holiday weekend.  Be ready, however.