December 31, 2024

Markets:

Stock futures were slightly higher Tuesday, as investors look to wrap up another booming year that hoisted the S&P 500 to its second consecutive annual gain exceeding 20%, spurred by enthusiasm for rate cuts, economic strength and artificial intelligence.

Stocks also benefited as the Federal Reserve began cutting rates on the heels of one of its most aggressive hiking cycles in recent history, spurring hopes for a period of economic growth as borrowing costs ease. Since September, the central bank has lowered rates by 100 basis points. Although further rate cuts are expected in the new year, the Fed’s pace may slow from initial expectations.

President-elect Donald Trump’s successful reelection campaign in November also proved a boon for the market, fueling hopes of deregulation, lower corporate tax rates and a focus on the U.S. economy, which has remained resilient. Expectations for a cryptocurrency-friendly administration powered bitcoin to a record above $108,000. Tesla was another big election winner due to CEO Elon Musk’s close ties to Trump.

Despite the strong year-to-date performance, Wall Street is entering the final day of the year on sour note as the market has lost some of its momentum in recent sessions. December has been a weak stretch for equities as investors take profits in some of 2024′s biggest winners and fears mount over rising rates into year-end. The Dow is down 5.2% for its worst month since September 2022. The Nasdaq is up 1.4%, while the S&P is down 2.1% and headed for its worst month since April.

Portfolio:

What a premarket so far we have and can someone say Gaps everywhere!  Makes perfect sense that they would do this on the final trading day of the year.  It's been a great year, although pretty tough several sessions overall to end it.  But this is changing and this poor price action was done on such low volume.  The real trading will begin on Monday when everyone will be back from Holiday break and we will have full volume back as well.  IOf 2025 does not excite you and all the opportunity this market will generate with this new administration, the tech cycle, and other sector plays than I'm not sure what will.  Early stages of a ulti year revolution.  Understand this.

We enter the last trading session holding setups in AAPU and QBTS.  Expect a very light session with volume.  Be patient.  Ejoy the New Year.  Be ready to roll come Tursday but especially on Monday 1/6 when everything is back in this market!  Be ready today in case opportunity ignites early!