January 14, 2025

Markets:

Stock futures rose on Tuesday, as investors braced themselves for the first of two inflation readings due this week.

The producer price index, which measures wholesale inflation, is set for release at 8:30 a.m. ET. Economists polled by Dow Jones predict that headline PPI grew 0.4%, while the core figure, which excludes food and energy, rose 0.3%.

The December PPI measure — and the consumer price index report due Wednesday — will be market catalysts as investors grapple with last week’s blowout jobs report. The upcoming inflation reports will inform the Federal Reserve’s next move on interest rate policy.

On the earnings front, banking behemoths will kick off fourth-quarter earnings season this week, with JPMorgan Chase, Citigroup, Goldman Sachs and Wells Fargo posting results on Wednesday. Morgan Stanley and Bank of America are slated to report on Thursday.

Portfolio:

Yesterday, premarket notes were on point once again with the development that occurred throughout the trading day. Very interesting with the indices pushing highs with 40 minutes to go yesterday. The stronger the close the higher chance we will see a recovery effort / bounce the next few days. Very promising for traders! Notice how indices (Nasdaq, SP500, IWM) all made new selloff lows on yesterday's gap down open and climbed steadily all day to close on session highs. This happened as the NYMO/NAMO indicators closed the day well above the recent (Dec 18th) "oversold" readings. We now have a positive (bullish) divergence, which should set up the market for a big bounce phase this week.

OfCourse it all comes down to PPI today, but you can see where this market wants to go short term. Keep in mind the number of short term puts that they can burn heading into Friday's expiration as well. What also intrigues us this week is TSM earnings. TSM can ignite the semi sector with force. QQQ path to 512 is in the works possibly for this week.

Let's see what PPI brings us in a bit, how we respond, and how to we build from it after the open! We enter the opening bell with one setups; HOOD.  We will be looking to add today so please be ready!