December 16, 2024

Markets:

Stock futures rose slightly on Monday, with the Dow Jones Industrial Average riding a seven-day losing streak into a week highlighted by a key central bank meeting.

The stock market is coming off a sluggish week. The Dow lost 1.8% last week and has lost ground in each of the last seven sessions. The S&P 500 dipped 0.6%, and has retreated in four of the past five sessions. The Nasdaq Composite outperformed, grinding out a gain of 0.3% for the week.

After a broad rally following President-elect Donald Trump’s November win, the stock market appears to have reverted to a narrow tech-led move in recent days.

The main draw of this week is the Federal Open Market Committee’s meeting on Tuesday and Wednesday, when Federal Reserve officials are widely expected to lower the benchmark interest rate again.

On Monday, investors will get some updated economic data, with preliminary purchasing managers index readings due out before the bell.

Portfolio:

We enter this new trading week holding setups in SOFI & TEVA.  Monster week ahead and we look to continue to pinpoint opportunity. Markets are coasting steadily for now and as long as the SPX holds above its 20-day EMA, the bullish case remains intact. Here is what we need to know for the week.

Earnings to Watch:  MU, NKE, FDX

Economic Calendar:  FOMC Meeting (Dec. 17-18).  Retail Sales (Tuesday), Housing Starts and Permits (Wednesday), PCE Inflation (Friday), The Fed’s preferred inflation gauge.

Options Expiration Week:  Friday, Dec. 20 marks a major quarterly options expiration. Expect volatility as large positions roll off.

Runway continues to build and market remains steady and super positive.  Wildcard this week is the Fed and volatility we expect to occur due to Triple Witching on Friday.  However, massive opportunity and set-ups ALWAYS emerge from this price action.  We welcome it!

Let's have a monster week.  Be ready!