October 21, 2024

Markets:

U.S. stock futures fell slightly on Monday after the Dow Jones Industrial Average and S&P 500 notched their best weekly win streaks of 2024.

The moves come after both the S&P 500 and 30-stock Dow registered all-time highs on Friday, cementing a sixth straight weekly advance for both benchmarks. The S&P 500 ended the week 0.85% higher, while the Dow closed up 0.96%. The Nasdaq Composite climbed 0.80%. Whether stocks can sustain those gains may depend on whether companies can beat expectations this earnings season, which is set to ramp up this week. Roughly one-fifth of S&P 500 companies are set to report through Friday.

On the economic front, leading indicators for September are due out Monday, at 10 a.m. ET.

On an earnings front 14% of S&P 500 companies that have posted results thus far this earnings season, 79% of them have exceeded expectations, as of Friday’s close, according to FactSet. But companies are picking up the pace this week. Roughly one-fifth of S&P 500 companies are set to report results Monday through Friday.

Earnings on focus this week: ENPH, TXI, LRCX, TSLA, IBM, NOW, BA, WDC, DXCM, and UPS.

Portfolio:

We enter the new trading week holding beautiful set-ups in BITX, RKLB, U, HOOD, and TSLL. Queue is igniting and we will be adding all week based on what we think could develop and leading into a few major earnings reports. A few themes we are looking at this week: Watch ES trading under 5880, with resistance at higher highs. Pay attention to the BRICS event. Pullbacks in high-growth sectors like tech, industrials, and defense may offer buying opportunities. There are some monster charts forming. Not only have we noticed strong bullish patterns forming in several names we love to track but now finding accumulation patterns taking center stage. To see this at these levels is extremely positive and bullish for us. Obviously, we still have a few headline risks in front of us. When we get past the elections, the next cycle will begin to form.

Friendly reminder and we will continue to do this…stay patient! Do not over allocate no matter how strongly you might feel about a position or a certain market period. This is what hurts most traders. Allow the trend to continue to build and allow the multiple wins to add up! One trade should not be valued more than others. The next several months will be one of the greatest periods for us. The trend expands! Let's have a great week!