Thursday, January 4, 2024

๐Ÿ‘Short-Term Pain Will Fade to Seasonal Strength

Good morning. Despite a weak start to the year, it's too soon to see how 2024 will unfold...
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. Despite a weak start to the year, it's too soon to see how 2024 will unfold. It's most likely that stocks will continue to come off their overbought levels from the end of 2023 in the coming days. That will allow markets to pause and then push higher, breaking all-time highs.

That's because January is seasonally a strong month for stocks. This January effect even plays out in years when the market ultimately declines. The chance of a large market drop now is low.

Investors should look for long-term buying opportunities here. And traders can play the market downside in the coming days, and then look to play rebound plays in the latter half of the month.

Now here's the rest of the news:

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MARKETS
DOW 37,430.19 -0.76%
S&P 4,704.81 -0.80%
NASDAQ 14,592.21 -1.18%
*As of market close
Markets sank on Wednesday, amid the latest Fed meeting minutes and a drop in job openings.
Oil jumped 3.7 percent, closing the day at $73.01 per barrel.
Gold slid 1.1 percent, ending trading at $2,050 per ounce.
Cryptocurrencies declined, with bitcoin at $42,763 at the market close.

Today's TOP TIPS
2024 Could Prove a Boon for This Underperforming Sector
2023 was a great year for the markets. But behind the headline data, some sectors performed better than others. Most of 2023 followed the narrative of rising interest rates. That weighs on the cost of capital.

However, that trend has started to shift in recent months. Interest rates have peaked. And investors are looking toward interest rate cuts in 2024. That could prove a boon for companies that benefit from lower rates, which may be outperformers this year as a result.

» FULL STORY

Insider Activity Report: Greif (GEF)
Lawrence Hilsheimer, CFO at Greif (GEF), bought 2,210 shares in two transactions in the last week of December. The buys increased his position by just under 2 percent, and came to a total cost just under $150,000.

The CFO was a buyer and seller of shares earlier in 2023 as well. A few other company insiders were active, mostly as sellers, with one notable buy from the company's Chief Supply Chain Officer.

» FULL STORY

Unusual Option Activity: Shopify (SHOP)
Commerce platform Shopify (SHOP) rose over 120 percent in 2023, fueled in strong part by the year-end rally. One trader is betting shares will pull back in the coming weeks following their major move.

That's based on the February 2 $64 puts. With 28 days until expiration, 8,931 contracts traded compared to a prior open interest of 203, for a 44-fold rise in volume on the trade. The buyer of the puts paid $0.60 to make the bearish bet.

» FULL STORY

IN OTHER NEWS
Oil Prices Moderate After Red Sea Shutdown

Oil prices spiked higher in recent weeks, amid a shutdown in global trade traversing the Red Sea. However, oil prices are starting to moderate, even as major shipping companies have scaled back operations in the area, greatly increasing travel distance.
U.S. Box Office Tops $9 Billion in 2023

The domestic box office topped $9 billion in 2023, the best year for movies since before the pandemic. However, that's still well under the $11 billion record set in 2019. There were 17 fewer films widely released in 2023 compared to 2019, with films like Barbie and Oppenheimer leading box office sales ove the summer.
BYD Beats Tesla on EV Sales

Chinese car manufacturer BYD (BYD) sold more all-electric cars than Tesla Motors (TSLA) last year. This is the first time since 2012 that Tesla hasn't held the top spot, the same year the company introduced its Model S sedan. BYD produced about 440,000 more vehicles than Tesla last year.
Top Real Estate Sale in U.S. Went to Beyoncรฉ and Jay-Z

At least 5 residential properties sold in the United States for at least $100 million last year, down from 7 transactions in 2022. The largest deal was the $190 million paid for a Malibu mansion, bought by Beyoncรฉ and Jay-Z. The overall housing market was weighed down by high mortgage rates.
Fidelity Reduces X Valuation

Mutual fund company Fidelity has marked down its investing in X holdings, the parent company of social media platform X, formerly Twitter. The company bought a stake for $19.2 million in October 2022, and reduced its valuation by 65 percent in October 2023. The fund has further reduced its valuation by 71.5 percent.

S&P 500 MOVERS
TOP
MPC 4.535%
NTES  4.196%
LLY 3.959%
EOG 3.026%
VLO 2.862%
BOTTOM
PODD 7.427%
ENPH 6.854%
WAT 6.6%
APTV 6.333%
DG  6.17%

Quote of the Day
We believe AI is different because the key players are global CSPs [cloud service providers] and enterprises, vs. mostly start-ups focusing on consumer market during the Internet and the VR bubbles. CSPs/enterprises invest AI-related capex to enhance/create business models and increase sales/efficiency.
- Robert Cheng, analyst at Bank of America (BAC), on why the rollout of AI technologies isn't the same as other technologies like the internet in its early days or the metaverse themes a few years back.

Sponsored Content
Option Strategy with 97% Accuracy in Today's Market
Image
Have you seen this man?

You're not alone. Most people have never heard of Jim Fink.

A maverick options trading strategy that has not taken a single loss this year.

In fact, it has a 97% accuracy at hitting winners over the past 8 years!

So how on earth does he do it? (especially in THIS market)

Jim has agreed to reveal his personal options technique in a rare, one-on-one interview.

In it, he shares the details of the strategy that enabled him to...
  • Quit the working world and retire early as a multi-millionaire
  • Turn potentially losing trades into winners, giving him one of the top track records I've ever seen (both on and off Wall Street)
  • Works equally well in both bear and bull markets.
You Can Access This Rare, Eye-Opening Interview Here.


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