November 7, 2024

Markets:

Stock futures gained slightly after a huge market rally following Donald Trump’s decisive victory in the presidential election. Traders are also awaiting the Federal Reserve interest rate decision Thursday afternoon.

Trump’s triumph in the race for the White House spurred a surge in stocks that sent the blue-chip Dow soaring by more than 1,500 points. The S&P 500 jumped 2.53% for its best post-election day in history.

Bitcoin, the U.S. dollar and bank stocks all jumped as part of Wednesday’s post-election advance. On the other hand, several international funds and solar stocks struggled as investors expected the President-elect’s policies to hurt these names.

Market participants on Thursday will closely monitor the Federal Reserve’s interest rate decision and Chair Jerome Powell’s subsequent press conference. Fed funds futures are currently pricing in a 100% likelihood that the central bank lowers the borrowing cost at this gathering, according to CME Group’s Fed Watch tool.

Initial jobless claims data came in roughly in-line with estimates on Thursday morning at 221,000. Economists surveyed by Dow Jones were expecting 220K claims for the week ending Nov. 2. The four-week moving average for initial claims is now 227,250, according to the Department of Labor.

Portfolio:

What a day yesterday and monster profits booked with TSL and AFRM. We move into the new session holding set-ups in WULF, BITO, and SOXL. Love the set-ups and love what's emerging and love the activity in the queue. As we continue to state; your greatest opportunity is now at our doorsteps over the next year. Massive runway. A few takeaways, ideas, and trend levels we are looking at. We love to share this when narrative/ technical have changed a bit as many of you know and we hope this helps with your own planning:

VIX fell over 20% yesterday, one of its largest one-day falls ever. In fact, the VIX has fallen by 20% or more in a single day less than 20 times historically. On average, one month later, the SPX was higher 83% of the time one year later.

Early themes under President Trump:

– Infrastructure and Industrial stocks
– Financial stocks as deregulation hopes will boost this sector, with banks enjoying potential for increased lending and profitability under Trump’s policies.
– Crypto
– Semi's
– Renewable energy and emerging tech
– Trade-sensitive sectors like agriculture, automotive, and manufacturing face volatility due to tariffs.

Technically, SPX has room to 6030. Right now, we are focuses on 5880 – 6030 now. We have room here in between with massive opportunity on both sides of the trade should we stay in range. If we trade to 6030 and breaks / hold. We have our next runway being built.

QQQ, we really want to see a hold of 507/508 level now. QQQ is in a massive breakout formation. Few understand this and the levels we can run too over the next year with the tech revolution taking place led by AI. They continue to deny this and the chase for performance has yet to begin. With Trump in office and the policies we believe his administration will bring with, we have a massive opportunity in this sector for years to come.

We will touch upon trend lines over the next few weeks. Be ready today.