Weekend Wall Street #28 - Futures Plans and My Top Trades for 1/30-2/3
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Traders, we have an extremely volatile and exciting week ahead of us. Take a look at our economic calendar below:
The main thing the market will be watching is the Fed interest rate and commentary on Wednesday.
Last week was an exciting one for bulls, and so has been the month of January. We saw meme stocks and companies like LCID 0.00%↑ fly +100% on some rumours in the span of 2 hours! This can mean one of two scenarios:
A blow off the top short squeeze and the market dumps
Risk is back on and traders are waiting to get back into speculative assets.
Speaking of speculative assets, Bitcoin flew higher this weekend as well, topping right under $24K. Bitcoin tends to be a good indicator of risk, as when risk is on, crypto, the riskiest asset (imo) runs.
Right now, the market is pricing in Wednesday to be the last rate hike before we cut back down. The thing about this for me is that if the Fed hints at pausing rate hikes then the market may rally, therefore making problems worse for us in the future, because at the end of the day, inflation is still at 6.3% when the US target is 2%.
Earnings
Some economists are predicting we will have an “earnings recession“ and we will get our first glimpse on if they are right this week. AAPL 0.00%↑ which is the largest weighted company in the S&P 500 is reporting and it will have a huge influnce on the market. Not only that, we have SoFi on Monday, Exxon, UPS, McDonalds, Pfizer, Meta, Peleton, and Google all this week.