January 8, 2026

Markets:

Stock futures fell Thursday, putting the S&P 500 and Dow Jones Industrial Average on track to pull back further from record levels.

The S&P 500 and Dow ended Wednesday’s session in the red after touching fresh all-time highs. Those declines came as crude prices slid after President Donald Trump said that interim authorities in Venezuela will be turning over as much as 50 million barrels of oil to the U.S., prompting concerns over increasing oil supply. Crude prices rebounded Thursday, with U.S. oil rising more than 1%.

Defense stocks rallied Thursday after Trump called for a $1.5 trillion defense budget in 2027. Northrop Grumman gained 6.8% in premarket trade, Lockheed Martin was last seen 6.7% higher, RTX advanced 5.4%, and Kratos Defense was up 6.6%.

Markets have largely shrugged off global geopolitical risks, but growing tensions could test the resilience of stocks as the new year begins.

Layoffs in December hit lowest in 17 months.

Portfolio:

We enter this trading session holding setups in ONDS, SYKT, VNDA, and TE.

SPY fully filled its prior bear gap yesterday and is now acting as resistance. We believe a test of 700 is coming sooner rather than later. From a technical standpoint, it’s increasingly difficult to argue against a push to that level.

QQQ has printed a second consecutive gap down over the past two sessions and appears to be attempting to fill today’s gap. As long as price remains above 620, the broader bullish structure stays firmly intact.

Across the board, we’re seeing outstanding chart formations. Yes, there’s noise — but that’s all it is: noise. Tune it out. Stay focused on what’s being built beneath the surface.

We believe the market is on the verge of a meaningful breakout, with earnings season acting as a powerful catalyst. The setup for serious money-making opportunities is coming together right now.