October 28, 2024

Markets:

U.S. equity futures jumped on Monday as investors looked for a batch of megacap technology earnings to keep driving the Nasdaq Composite to new heights this week. A cooling geopolitical situation also aided risk sentiment.

Weekend airstrikes by Israel against Iran did not target oil or nuclear facilities as was feared and oil futures were lower in early trading.

Both the Dow and S&P snapped a six-week winning streak, but the Nasdaq eked out its seventh positive week in a row.

Wall Street is bracing for a big week in markets that will mark the busiest week of third-quarter earnings reporting season and the final week before the Nov. 5 U.S. Presidential election. Five of the Magnificent Seven companies – Alphabet, Microsoft, Meta Platforms, Amazon and Apple – are scheduled to report third-quarter earnings.

Traders are also watching for a slew of key economic data this week, including the September jobs report due Friday; the September personal consumption expenditures, or PCE, price index, expected Thursday; and a preliminary reading on third-quarter gross domestic product out on Wednesday.

Portfolio:

We’re heading into an incredibly exciting two-week stretch. For traders, it doesn’t get much better than this. We're about to see numerous setups emerge across sectors, with major reports, critical data points, and elections all on the horizon. The “runway” we’ve talked about over the past year keeps building, and we’re on the brink of a euphoric move that could last for months/several quarters. The real chase hasn’t even begun yet. So while it’s been a productive period, remember to stay patient and avoid over-allocating into any single position, no matter how strong the conviction.

Going into this period, we’re holding setups in HOOD, PLTR, and TSLL. Historically, in previous elections, the SPX often sold off in the days or weeks leading up to Election Day, followed by a rally toward year-end once there’s clarity. While this pattern hasn’t always aligned with expectations this year, it’s something we’ll stay attuned to.

With major economic reports like GDP, Core PCE, and NFP on the way, plus Election Day and the Fed’s upcoming rate decision, we’ll be monitoring these economic indicators closely to stay grounded in fundamentals and identify setups with strong potential into late 2024.

Let’s make it a great week and be ready for what’s ahead!