October 18, 2024

Markets:

Stock futures rose on Friday as investors aimed to close the week on a positive note, with Netflix's strong earnings boosting sentiment.

Netflix shares surged 7% after the company exceeded Wall Street's expectations in both revenue and profit for the third quarter, reporting a 35% increase in ad-tier memberships from the previous quarter.

These developments followed a rally in Travelers, which propelled the Dow to a record closing high on Thursday. Meanwhile, the S&P 500 inched lower despite reaching a new intraday high, and the tech-heavy Nasdaq Composite ended slightly higher.

On the economic front, investors are looking ahead to Friday’s reports on housing starts and building permits. Market participants will also be keeping an eye on speeches from key central bank officials, including Atlanta Federal Reserve President Raphael Bostic and Minneapolis Fed President Neel Kashkari.

Apple shares jumped 2% in premarket trading on Friday following a Bloomberg report that sales of the iPhone 16 in China have risen 20% in the first three weeks compared to the iPhone 15, according to Counterpoint Research. This data suggests the iPhone 16 launch is outperforming its predecessor.

 

Portfolio:

It’s been another strong week, but the most exciting aspect is the technical setup that’s continuing to develop, setting up for a potentially extraordinary cycle. The market is shaping some beautiful charts, and this could be one of the best cycles we've seen. The QQQ chart looks fantastic, SPY is continuing to build, and now small caps are coming back into play.

In the short term, we anticipate a strong breakout fueled by earnings and the upcoming election. Afterward, there may be a brief pullback to fill some gaps, but then we expect a clear runway for further gains. Some sectors may avoid any pullback altogether and continue building momentum. The market’s resilience has been impressive, consistently absorbing any minor pullbacks. Remember, the charts reveal the true story—don’t get caught up chasing headlines.

As for today, we enter the final trading session of the week holding positions in OKLO, RKLB, U, HOOD, and TSLL. The queue continues to heat up, and with it being OPEX, expect volatility today. Next week promises to be explosive as traders start positioning for major tech earnings. Our favorite time of the year is right around the corner!