October 25, 2024

Markets:

Stock futures rose on Friday following the S&P 500's break from a three-day slump, as investors looked to cap off a volatile week with gains.

The moves came after a mixed day on Wall Street, where both the Nasdaq Composite and the S&P 500 closed higher, driven by Tesla's strong post-earnings performance. The electric vehicle giant saw its best trading day in over a decade, buoyed by earnings that exceeded expectations and CEO Elon Musk’s optimistic forecast for vehicle growth in the coming year.

A pullback in Treasury yields also supported the upward momentum in both indexes, according to Megan Horneman, chief investment officer at Verdence. The 10-year Treasury yield, after hitting three-month highs above 4.25% midweek, retreated to ease market pressure.

In Asia-Pacific, markets presented a mixed outlook Friday, as investors awaited Japan’s upcoming general election. Tokyo reported a dip in its headline inflation rate to 1.8% in October from 2.2% in September, with core inflation also edging down to 1.8%. Japan's benchmark Nikkei 225 slipped 0.60% to close at 37,913.92, while the Topix dropped 0.65% to 2,618.32, marking a fifth consecutive day of losses.

European markets opened slightly lower, with investors digesting earnings reports from companies such as Mercedes, Remy Cointreau, and NatWest.

Portfolio:

This week was a strong example of the value in staying patient, committed to one’s strategy, and focused on perspectives despite fluctuating narratives or short-term price manipulations. Yesterday’s performance was a reminder of that approach. Although it’s been a choppy week, we managed to book some profits and identify promising setups. We enjoyed another MONSTER week of profits!

Today, we enter the last trading session of the week holding positions in HOOD & TSLL. Next week, earnings season ramps up, marking the last full trading week before the elections. We couldn’t be more excited about what’s coming. Technically, the market shows strong building potential, and it feels like we’re on the verge of a promising cycle for traders. Let’s make today a great one!