December 23, 2024

Markets:

Stock futures were mixed early Monday as the market gears up for a holiday-shortened trading week.

Trading is expected to be relatively muted during the week. The New York Stock Exchange closes early Tuesday for Christmas Eve at 1 p.m. ET, and the market is shut on Christmas Day.

Investors are hopeful that a so-called Santa Claus rally may help the market end 2024 on a high note, especially following a tumultuous week. Dating back to 1969, the S&P 500, on average, added 1.3% in the last five trading days of the year and the first two in January, according to the Stock Trader’s Almanac. 

The second half of December is also typically the second-strongest period of the year for U.S. equities, and the S&P 500 has been up 83% of the time in December of presidential election years, according to Bank of America.

On the politics front, President Joe Biden signed a government funding bill on Saturday that averted a government shutdown. The bill funds federal agencies at current levels for the next three months.

Portfolio:

Last week’s trading was dominated by a hawkish FOMC meeting that triggered a midweek sell-off, followed by a sharp rebound spurred by cooler-than-expected Personal Consumption Expenditures (PCE) data and dovish commentary from Fed officials.  The upcoming holiday-shortened week will likely see lighter trading volumes, with minimal economic data releases and no major earnings reports. 

From a technical stand point, Indices such as the S&P 500 and Nasdaq 100 are holding above key support levels, this is encouraging especially for those looking for further gains.  For the Nasdaq, watch for a breakout above 21,600.

We will watch volume and rotation early on this morning.  Remember one key aspect; the "Santa" rally many refer too actually begins tomorrow.  It's typically the last 5 trading sessions of December and the first two of the New Year.  These sessions have historically printed the best returns for the overall market.  Keep that in mind.

We will be looking to add, so please be on alert today.  NO changes needed with our current holdings in QBTS, LMND, and JOBY.