DailyPlay Updates – December 28, 2023

As the trading year shifts to a close, equities experienced some consolidation in recent weeks slowing down the momentum from early December. However, the risk-on sentiment remains strong in markets as the pricing in of a dovish Fed, and potentially up to 3 interest rate cuts in 2024, continues to provide a tailwind. Fed futures indicate that rates will hold steady for the next Fed meeting on January 31st. The first 25 point rate cut, based on Fed futures, looks set to go ahead in the March Fed meeting with a 73% probability of this occurring. Once again, it is almost time for another earnings season with Q4 earnings kicking off in the 2nd week of January lead by the banking giants. Analysts are expecting a 2.4% earnings growth rate for companies in the S&P. 

Our DailyPlay portfolio weighs more to the bullish side with six bullish positions and one bearish position. This largely reflects our sentiment heading into 2024. We will continue to monitor for new positions and opportunities to close out existing positions once they reach our TP/SL thresholds.