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Market Recap & Upcoming Week

Last week marked a significant milestone with the S&P 500 crossing the 5,000 threshold, signaling a robust market despite recent economic uncertainties.

This achievement reflects a market that has shown remarkable resilience and strength, moving beyond the recession fears that dominated headlines a year ago.

The surge in interest for “Taylor Swift” over “recession” in financial search trends illustrates a shift in public focus, underscoring a more optimistic growth and inflation outlook.

Despite the Fed’s aggressive rate hikes, the consumer sector has remained vibrant, supported by strong discretionary spending, although there are emerging signs of consumer fatigue.

The overall economic environment suggests a slowdown but not a downturn, with sectors like housing and manufacturing showing signs of recovery as the Fed prepares to pivot towards rate cuts.

The job market’s robust performance, highlighted by unexpected payroll growth, further supports the narrative of a resilient economy.

This labor market strength, coupled with a decline in consumer credit growth and a normalization in mortgage-delinquency rates, paints a picture of a healthy but cautious consumer backdrop.

This week promises to offer crucial insights into the state of inflation and consumer spending in the U.S. economy.

The spotlight will be on the Consumer Price Index (CPI) release on Tuesday, which could influence Federal Reserve decisions if inflation shows signs of persisting or declining.

Additionally, Thursday’s retail sales data will provide a glimpse into consumer behavior at the start of the year, reflecting on the broader economic health.

The homebuilder confidence index will also be released, offering further indications of the housing market’s momentum amidst ongoing economic shifts.

On the corporate front, a series of earnings reports are anticipated, with market participants keenly awaiting figures from major players such as Coca-Cola Co., Cisco Systems Inc., and Stellantis NV.

These reports could not only shed light on individual company performances but also provide broader insights into various economic sectors.

As these developments unfold, investors and analysts will be closely analyzing the data to gauge the potential impact on market trends and monetary policy decisions.

Daily Trading Signals (Highlights)

Coinbase (COIN) – Following up on this trade, we are currently up +20% profit!

Congrats to those who took this trade with us! 💰🔥💪

Cloudflare (NET) – Following up on this trade call, we are now up over +40% profit!

Congrats to those who took this trade with us! 💰🔥💪

Join our community for real-time alerts and weekly videos:
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Subscribe for real-time alerts and weekly videos:
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Market Recap & Upcoming Week

The U.S. economy showed robust signs of strength last week, with the S&P PMI exceeding expectations, signaling potential stabilization in the manufacturing sector.

Services PMI also indicated continued economic vigor, especially in consumer-driven sectors. U.S. GDP growth for the fourth quarter surpassed predictions, hinting at enduring resilience in consumption despite higher interest rates.

However, some moderation is expected ahead, maintaining a soft-landing scenario.

Inflation trends also support a favorable outlook, as core PCE inflation dipped below 3% for the first time since 2021, strengthening the “Goldilocks” narrative of cooling inflation with sustained growth.

All eyes are now on the Fed’s upcoming meeting, where rates are expected to hold, but future cuts are likely, with market expectations aligning with the Fed’s cautious approach to returning to neutral rates.

Historically, markets have fared well when the Fed begins cutting rates in a non-recessionary period, suggesting potential for positive market performance ahead.

Investors are bracing for a critical week as the Federal Reserve’s interest rate decision looms, with all eyes on Fed Chair Jerome Powell for potential signals regarding future rate adjustments.

Alongside the Fed’s announcement, the job market comes under the spotlight with forthcoming data on job openings, private payroll figures, and the comprehensive monthly employment report, offering insights into the labor market’s robustness.

The earnings season hits a peak with several industry behemoths set to unveil their financial performance.

Tech leaders like Microsoft, Alphabet, Apple, Amazon, and Meta are queued up throughout the week, providing a snapshot of the tech industry’s health.

Additionally, pharmaceutical majors Pfizer, Merck, and Novo Nordisk will reveal their earnings, as will energy giants ExxonMobil and Chevron, promising a week rich in financial disclosures and market-moving news.

Daily Trading Signals (Highlights)

Cybersecurity ETF (CIBR) – Just broke out to new all-time highs, after a nice accumulation pattern on the weekly chart. Accumulating more of this. 💰🔥👍

Nvidia (NVDA) – Following up on our previous trade call, prices have hit our first target of $600! 💰🔥👍

Zooming out on the weekly chart, we see that the trend is still very strong, and a possible optimistic target is close to $850, which means we can look to enter on any pullbacks or consolidation.

e.l.f. Beauty (ELF) – Strong breakout on the weekly chart to new ATHs.

On the daily chart, we saw a selldown on huge volume, but prices got pushed back up, suggesting that there are also a lot of buyers.

Can consider taking a long position with a tight stop below the pinbar (around $140), and target around $190.

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