Prime Playbook: Groundhog Day

February 4, 2024 Volume 9

Well, THAT was fun!

LOTS of records were broken last week. META added the most market cap in one day. SMCI went bonkers. Go take a look at the chart on DECK!! S&P 500 is up 20% in the last 3 months alone. Can it continue?

What I’m thinking heading in to this week:

Everyone looked to Jerome Powell and the FOMC meeting this past Wednesday. The market feigned shock at no rate cut, and the possibility of no rate cut in March. Yet it quickly shook that off and kept right on going. Why? Let’s think about it…

Powell didn’t say anything about “further policy tightening”, which has been a staple in his speeches up until now. He didn’t say they won’t cut in March, but for some reason, even after years of seeing JP monthly, traders still think THIS will be the time he tips his hand. NEVER GOING TO HAPPEN.

The data last week came in strong. The jobs market is strong, according to the numbers. The FED has stated the data is showing a strong economy, which is why they are hedging by saying “we’re just going to watch a little longer before making our move”.

Punxsutawney Phil did NOT see his shadow this past week, which is “bullish” for an early spring. The market is slowly staring to come to the comprehension that rate cuts are going to come, and they are NOT going to go up any longer. The realization, that cutting rates is historically quite bullish, will bring investors back to the table. This is the market version of “not seeing it’s shadow”. I’m not saying there won’t be a pullback at some point, but I also think the market can see the 5085 area this week if we hold over 4940.

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A Few Random, BUT IMPORTANT, Things…..

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HOUSEKEEPING NOTE ABOUT LOTTO FRIDAY STACK:

I am having major shoulder surgery this Thursday. I have not made a final decision yet, but for this week you MAY get the Stack on Wednesday instead of Thursday. If possible, I would try and supplement with additional lotto ideas Thursday evening. Please understand this is not the norm, and I apologize for any inconvenience. Thank you for you continued support, and feel free to reach out with any questions or concerns.

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LULU

LULU 0.00%↑ saw a large investment from the New York State Teacher’s Retirement Fund, one of the largest pensions in the country.