October 23, 2024

Markets:

Stock futures dipped on Wednesday after the S&P 500 logged its first consecutive losses since early September, while Treasury yields edged higher.

The rise in yields weighed on futures. The 10-year Treasury yield climbed 3 basis points to 4.23%, its highest level since July. Higher yields exerted downward pressure on the S&P 500 and Dow on Tuesday, with both indexes closing slightly lower. However, the Nasdaq Composite managed a gain of around 0.2%.

The 10-year yield's increase is driven by strong economic data and concerns over the deficit, despite the Federal Reserve's half-point rate cut in September. Traders are growing cautious, fearing that the Fed may be less inclined to further reduce rates, even though it had forecasted another half-point cut by year-end.

In Asia-Pacific, markets mostly rose on Tuesday, as investors focused on the impressive debut of Tokyo Metro, a Japanese subway operator.

Big earnings reports are on tap tonight from TSLA, IBM, LRCX, and NOW.

 

Portfolio:

We're heading into this highly anticipated day with positions in IONQ, WULF, MSTU, BITX, RKLB, U, HOOD, and TSLL. Several key earnings reports tonight could move the market, especially from companies we're closely following. We're eager to hear their outlooks, particularly in the AI sector, which could provide valuable insight into trends for the coming months and into 2025.

Just a friendly reminder—last week we mentioned the potential for volatility this week and possibly into next, with major earnings reports and the election ahead. This is perfectly normal, and you should anticipate some price action! This volatility is setting the stage for a strong close to 2024 and the opportunities in 2025. We're still in the early phases of these opportunities, so patience is key. Traders chasing intraday moves are getting caught in the chop.

Yesterday was a much-needed breather for the market. We may see a push toward $500 for QQQ within the next 24 hours, fueled by earnings from TSLA and others. The QQQ chart continues to show expansion, though few are recognizing this. Also, when we see consistent higher lows in stocks like AMZN and NVDA, it’s hard to bet against this market.

The next 24 hours promise to be exciting—stay ready!