Stock Market Update Friday January 19, 2024 The stock markets are showing enthusiasm for an upward start in 2024; however, I anticipate another brief seasonal dip in the coming weeks before the rally gathers substantial momentum. Today's option expiration had an unusually substantial impact, contributing to a notional market cap of approximately $1.7 trillion. During options expiration, market makers need to close the price where they can maximize profits. As a result, the markets experienced a modest upward pull through midday, led by the Nasdaq, which gained 0.5%. In the afternoon, the upward momentum intensified, particularly driven by the tech sector, causing the Nasdaq to register a gain of just over 1.5% for the day.
Away From Stocks: Treasury's saw another mixed showing with two-year yields climbing five basis points to 4.39% and the long bond ticking to 4.36% from 4.37% Thursday, while WTI crude closed at $73.25 a barrel and gold finished little changed at $2,029 per ounce. The VIX settled a bit north of 13.31
Today's weekly Premium Chart is PayPal, a new buy alert on the weekly chart.