January 21, 2025

Markets:

Stock futures were under some pressure on Tuesday morning after President Donald Trump said he was considering tariffs on Canada and Mexico.

Equity futures gained during a shortened trading session on Monday as Trump was sworn in as the 47th president. And they were higher at the start of Monday evening trading. Regular trading was closed Monday for the Martin Luther King holiday.

But futures turned lower as Trump made the tariff comments at the White House as he was signing executive orders. Trump said he was thinking of 25% tariffs on Mexico and Canada on February 1 because of their border policies. Trump also mentioned China some during the discussion with the press, but did not specify any plans for tariffs. The president said maybe the U.S. could put tariffs on China if the country doesn’t approve a TikTok deal.

Wall Street will be focused on Trump following through on the pro-business proclamations he made throughout his campaign, most notably his calls for looser regulations that helped lift banking banking stocks following his election win in November. Other components of the so-called Trump trade, including small caps, oil stocks and bitcoin, will be hypersensitive to where his administration goes from here.

Portfolio:

We enter the first trading session of the year under President Trump and his administration holding setups in PSQH, AAOI, and AAPU.  We are adjusting our stop on AAPU to 27.00

Earnings, led by banks, have been strong to kick off Q1.  This week focus will be on NFLX, COF, GE, ALLY, TXN, and UNP to highlight a few.  Next week will begin the tech heavyweights.  

Key technical levels for the week; Looking for SPY 603 and QQQ at the 526 mark.  I'll be really interested to watch price and price flow to start the week.  Will be watching closely and do want to be super patient today. Allow the themes to continue to work.  Over the next few sessions will be receiving more and more information / direction from this new administration and the new themes with monster opportunity will emerge quickly within this market.  Happens every cycle!  Be ready today.