Monday, January 22, 2024

✌️A Market Rally Two Years in the Making

Good morning. It's been over two years since the S&P 500 set a new all-time high in early 2022...
It's the monthly jobs numbers today and they're not going to be pretty and will be possibly the tip of the iceberg as we head into May.

Good morning. It's been over two years since the S&P 500 set a new all-time high in early 2022. But that changed on Friday. It was no sure thing.

Friday's monthly option expiration saw over $7 trillion in notational value change hands. Typically, option expirations can be a case of the tail wagging the dog, and markets may see unusual moves on the day of options expiration itself. This month, stocks jumped higher rather than lower.

With this monthly expiration out of the way, the S&P 500 stands to make new highs in the coming weeks. With the S&P 500 breaking over 4,800, it may have more room to run in the weeks ahead. Investors could then play a further rally higher in the coming weeks, although it will likely be at a slower pace than the November-December rally.

Now here's the rest of the news:

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The lithium deposits on "Project Yellowknife" are not only sticking out of the ground in plain sight…

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Car companies, tech companies, billionaire magnates, and entire countries are all in an all-out battle to secure this critical metal.

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MARKETS
DOW 37,863.80 +1.05%
S&P 4,839.81 +1.23%
NASDAQ 15,310.97 +1.70%
*As of market close
Markets soared on Friday, leading to overall gains for the week.
Oil dipped 0.3 percent, closing at $73.86 per barrel.
Gold rose 0.4 percent, ending trading at $2,031 per ounce.
Cryptocurrencies dipped then rallied, with bitcoin at $41,601 at the stock market close.

Today's TOP TIPS
This Multi-Year Trend Is Just Getting Started
While the AI trend will likely keep some tech stocks jumping at times, other tech trends are also pushing one key part of the market. That's the semiconductor space.

Given the rise of technologies that require increasingly complex chips, it's set to be a strong few years for the space. That includes hardware for AI programming. But it can also include hardware for ongoing smartphone sales and other, less exciting technology.

» FULL STORY

Insider Activity Report: Liberty SiriusXM Group (LSXMA)
Berkshire Hathaway (BRK-A), a major holder of Liberty SiriusXM Group (LSXMA) recently added over 2.7 million shares in two transactions. The buy increased the company's position by 10 percent, and came to a total cost near $85 million.

That's the first insider buy since August, when the company's Chairman bought 140,000 shares for just under $5 million. Otherwise, there have been a few insider sales, including multiple company directors and the CEO.

» FULL STORY

Unusual Option Activity: Pfizer (PFE)
Drug manufacturer Pfizer (PFE) has been in a steady downtrend for the past year. One trader is betting that downtrend will continue in the coming weeks.

That's based on the February 23 $26 puts. With 31 days until expiration, 14,207 contracts traded compared to a prior open interest of 154, for a 92-fold rise in volume on the trade. The buyer of the puts paid $0.28 to make the bearish bet.

» FULL STORY

IN OTHER NEWS
Debt Market Heats Up Ahead of Interest Rate Cuts

With interest rates set to decline this year, investors have been pushing into low-rated corporate debt to grab high yields before they trend lower. That's allowed riskier companies to refinance and lower their borrowing costs, a trend likely to continue this year.
Wayfair to Cut 13 Percent of Workforce

Online retailer Wayfair (W) is looking to lay off about 1,650 employees, or 13 percent of its workforce. The company notes that it went "overboard" when hiring during the surge in online shopping demand in 2020, and that the space is now cooling off. About 20 percent of the cuts will come from the corporate team.
Ford Cuts F-150 EV Production

Ford Motor Company (F) is cutting production of its F-150 Lightning, its all-electric version of the popular pickup truck model. The company is increasing production on its Bronco SUV and Ranger pickup, reflecting lower-than-expected demand for electric vehicles.
Meta Acquiring Nvidia GPUs

Meta Platforms (META) CEO Mark Zuckerberg reports that the company is buying billions of dollars of H100 GPUs from Nvidia (NVDA). The graphic processing units are a key component for running AI technology, as well as metaverse-related graphics.
VF Corp Reports 35 Million Customers Hit by Data Breach

VF Corporation (VFC) reports that 35 million users were impacted by a cyberattack in December. The owner of apparel brands such as Vans and The North Face has not specified exactly what customer data was stolen. Ransomware gang ALPHV has claimed credit for a breach of VF Corp's systems.

S&P 500 MOVERS
TOP
TRV 6.327%
PYPL 6.088%
AVGO 5.959%
KEY 5.909%
AMD 5.908%
BOTTOM
MOH 3.897%
DG 3.383%
CNC 2.781%
PPG 2.546%
DAL 2.501%

Quote of the Day
Because I'm data dependent, I have incorporated the unexpected progress on inflation and economic activity into my outlook, and thus moved up my projected time to begin normalizing the federal funds rate to the third quarter of this year from the fourth quarter.
- Raphael Bostic, President of the Atlanta Federal Reserve, on why the central bank will likely hold off on cutting interest rates until the latter half of the year.

Sponsored Content
Stock Alert: "Project Yellowknife"
In the heart of Canada's Northwest territories lies Yellowknife.

But while Yellowknife's "gold rush" days have faded into history, this frontier town is witnessing a new kind of rush.

The lithium deposits on "Project Yellowknife" are not only sticking out of the ground in plain sight…

Any investor can go to google maps and check.

Car companies, tech companies, billionaire magnates, and entire countries are all in an all-out battle to secure this critical metal.

But there's still time for everyday investors to profit from this opportunity.

And to help you, the Katusa Special Situations team has put together a comprehensive, in-depth report on the company behind it all: Li-FT Power Corp (LIFFF:US and LIFT:TSXV).

Check out "Project Yellowknife" Right Now.


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