Setting the Stage: Where the Markets Stand

Markets wrapped up a short holiday week strong, staying above key moving averages. The prevailing trend remains bullish, with only mild profit taking that doesn’t disrupt upward momentum.

Futures and The Week’s Action

• Stocks: S&P 500 futures and Nasdaq both maintained strength above the rising 5-day moving average. Minor post-holiday dips are typical, not alarming.
• Themes: Market remains “innocent until proven guilty”—bulls are in control unless significant evidence emerges.

Crypto: Ready for a Breakout?

• Bitcoin & Altcoins: Crypto markets are showing continued strength and potential for a fresh breakout, especially after consolidation.
• Positioning: Staying fully invested in crypto with risk levels in mind ($105k and $102k as guideposts). Adapting the plan only if a meaningful pullback develops.
• Action: Focus on disciplined execution and adjustment on deeper retracements if they occur.

Macro Overview: Quiet Week Ahead

• Earnings: Sparse at the start of the week; slight pickup by Thursday. Nothing major on Monday or Tuesday.
• Economics: Watch for Fed Minutes (Weds, 2 pm ET) for possible volatility. Otherwise, a light economic calendar—little to disrupt market rhythm.
• IPOs: No significant debut expected.

Stocks: Big Tech, Large Caps & Key Setups

Instead of drilling down into individual tickers, here’s how the categories stack up:

• Big Tech: Maintains strong uptrends overall, pushing new highs in several names. Be selective: Many stocks are extended after recent rallies. The best opportunities are on pullbacks or consolidations, rather than chasing sharp runs.
• Large Caps: Continue grinding higher. Patience is warranted as many large caps show overbought conditions. The ideal approach is to accumulate on dips near support or wait for periods of consolidation.
• Volatility & Risk: Day trading has favored volatile names; swing traders should watch for signs of mean reversion or ranges tightening before fresh entries.