Rocket Equities & Options Report 01-22-24
Markets begin another week with higher prices across the board. We have 4th quarter GDP due out this Thursday, as well as many equities reporting earnings including NFLX tomorrow, TSLA on Wednesday, INTC on Thursday, as well as many others.
We have the Fed meeting next Wednesday, and it will be interesting to see what they have to say about a possible March cut. I do not see March as the meeting they will begin cutting, as they can probably hold out for 1-2 more meetings beyond March before they start the cuts. Markets are pricing in about a 40-50% chance we get a cut in March, which I think is way too high of a percentage at this time. The cuts are coming this year but probably more likely to start at the meeting on May 1st or June 12th.
I am seeing ABC's everywhere in this market, especially with the large Tech stocks. It looks like the Magnificent 7 have at least one more push to the upside.
The DXY has bounced to about a .382 retracement, and looks to move lower from here, which could add fuel to the Gold contract trading higher.
Gold has been in a consolidation for many years and looks like it is ready to break out to the upside once the DXY pulls back a bit from this 103 level.
Tech earnings look to power this earnings season, with the Magnifiect 7 expecting earnings growth of almost 47% this quarter, which dwarfs almost every other industry.
This will be an important week as we come into a Fed meeting next Wednesday, and tech earnings front and center - stay tuned for updates!
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