January 8, 2025
Markets:
U.S. stock futures traded lower on Wednesday. The action comes after a sharp decline in Big Tech stocks and renewed fears over the path of rate cuts spurred a sell-off on Wall Street.
Futures appeared to take a leg down earlier after CNN reported, citing sources, that President-elect Donald Trump is considering declaring a national economic emergency to push through new tariffs.
Investors are now looking ahead to the ADP private payrolls report and jobless claims data, both due Wednesday morning. Minutes from the Fed’s December meeting are slated for release at 2 p.m. ET.
Stocks are coming off a rough trading session, as the major averages finished solidly in the red following fresh economic data showing greater-than-expected expansion in the U.S. services sector, per the Institute for Supply Management’s services index.
Bond yields, which have been climbing on bets that Trump’s tariff and tax plans could lead to a spike in inflation, rose on the data. The rate on the benchmark 10-year note was recently above 4.7%, near levels last seen in late April.
Markets:
Absolutely wild overnight / premarket session thus far. Understandable, not with strong volume, but its noteworthy the price activity that is taking place. Nas futures were firmly up at one point over 80+ points before a headline was released from CNN stating President-elect Donald Trump is considering declaring a national economic emergency to push through new tariffs. No idea if this is actually true but regardless its a short term reaction. The very interesting part of this – which we need to all take notice on is this – QQQ support sits right around the 50 day SMA @ $512. We hit the 50 this morning in pre and bounced +2 off of it. Technically, we love to see this and it's crucial. Shows a higher lower potentially building once again. Still early but please keep this in mind. A break and hold under 512 and we would look at 505 area. From a SPY level – which have been key for us – 587. If it breaks and holds 585. From a Bulls perspective, we need to recapture 590. There is no clear trend between 585 – 590. Understand this. Stay patient. True trend will emerge soon enough.
We enter todays session holding positions in OKLO, FBL, INDI. Great start to the year for us!
Markets are closed tomorrow in observation of President Carter. We resume on Friday. Next week we finally have a full trading week which will provide a different perspective on how traders trade.
Please keep this in mind right now; shortened week, headlines everywhere, rumors rampant — silence the noise and just follow the trend. If they break we turn gears. But until they do, you have massive room to the upside. The technology revolution taking place is only beginning. People chasing day to day moves and headlines continue to miss the overall move and it's a true shame.
Be ready today for further updates and a possible new trade.