December 27, 2024

Markets:

Stock futures ticked lower early Friday as investors look to end the holiday-shortened week on a strong note.

These moves follow thin trading action in Thursday’s regular session. The 30-stock Dow eked out a narrow gain for its fifth winning day, while the S&P 500 and the Nasdaq Composite ended the session just below the flatline.

The three major U.S. indexes are in the green week to date after posting strong back-to-back gains at the start of the shortened holiday week. The S&P 500 is up 1.8% so far this week. The broad market index posted its best Christmas Eve performance since 1974 on Tuesday, according to Bespoke. The Dow has gained 1.1% this week, and a run-up in megacap tech stocks has pushed the Nasdaq Composite 2.3% higher.

Although trading has been muted this week, investors hope stocks will surge into the new year, spurred by the so-called “Santa Claus rally.” This refers to the market’s tendency to rise in the final five trading days of the year and the first two in January.

Portfolio:

We enter the last trading session of the week holding only TSLL.  Monster day yesterday booking a number of profits.  The overall theme that is being driven by this tech revolution continues to build and the next several months will continue to prove we are still fairly early in this cycle.  One more factor to consider is currently 2025 sets up for another year of accelerating EPS growth with decelerating GDP growth, historically the best backdrop for equities.  Few understand this or even speak on this.  But please keep this in mind.  This is another reason why we have such high hopes for 2025 as well.  One final reminder to our community as we enter 2025 and saying this more so as you see the sings in futures right now with no volume taking place.  Stop being so impatient, and reactive, and fearful on every little tick in the market. It will ruin you as a trader. You have to learn patience, confidence, and to control your emotions. I hate to see the amount of traders that were shaken out on Powell to only realize they made a big mistake a few hours later.  Expect bumps, but stay the course.  You have a massive opportunity over the next year.  Let's make it the best one yet!