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 Gainers📈 & Losers📉

Our Biggest Gainers & Losers of the Day in the $100,000 Build Portfolio

For the 15th January 2025:

• $1,700 in 1 Minute ⌚️

• The Amazon of AI 🤖

• Impartial News to Invest 📰

$1,700 in 1 Minute ⌚️ 

This is what a $1,700 candle looks like.

It’s the candle from the minute chart in the Nasdaq when the CPI data dropped. It netted me $1,700. That’s ~15% gain on the account in 1 day.

Now what?

Inflation’s Finally Chilling Out ❄️

I thought it was going to be a soft landing. It didn’t stop me waiting for the report like this.

Turns out I was lucky a genius & it was softer than a pillow at The Ritz.

• Headline CPI (includes everything): Up +0.4% month-over-month. Pretty much what everyone expected.

• Core CPI (excludes food and energy): Up +0.2%, the smallest increase since July 2024. This is the one investors really cares about & it was cooler than anyone thought.

I’ve already spoiled the ending.

Markets started dreaming of a world where the Fed keeps cutting interest rates. When interest rates fall, stocks tend to go up & to the right.

I’m already at an average profit of 50% profit. I’m targeting previous highs which’d net me about $4,000 but the Fed make an interest rate announcement on the 29th Jan.

I’d expect there to be no change. The only problem is if the vibe of the speech is not super positive about interest rate cuts the market could come tumbling back down.

Bulls make money, bears make money but pigs get slaughtered. I don’t want to be a greedy little piggy so I might cut the positions before the 29th whether I’ve hit the TP or not.

Microsoft & Meta also report earnings on the same day. If those aren’t great it might be another reason to send the market spiraling. I’d be less sad to take profit early than be holding as the market tanks.

GREEN EVERYWHERE 🌱

Don’t let me fool into thinking I’m actually Einstein. With that CPI news, you’d of had a harder job being in the red. All major U.S. indices had pretty impressive days.

• Nasdaq: +2.5%, breaking a 5-day losing streak. Biggest day since early November.

• S&P 500: +1.8%, three straight days of gains.

• Dow: +1.7%, with help from the banks.

BOND YIELDS GOT SPANKED 📉

I’ve been talking about bond yields a lot lately. It’s important to keep an eye on.

Falling inflation = traders buying bonds = lower yields.

• 10-Year Yield: Dropped 14 points to 4.65%.

• 2-Year Yield: Down 11 points to 4.28%.

Why does this matter?

Lower yields make stocks (especially tech) more attractive. That’s why I chose to go heaviest into the Nasdaq.

It’s not a coincidence it had the biggest day of all the indices.

RATE CUTS INCOMING? 👀

I doubt it tbh.

The soft inflation data has everyone thinking a rate cut is inbound. The strong jobs data make me think the fed will hold off for a little while.

The CME FedWatch tool now shows a solid chance of a quarter-point rate cut by March, May, or June. That seems more reasonable.

There’s a few people who are more pessimistic than me.

• Mohamed El-Erian (Allianz): “This is a relief, but don’t pop the champagne just yet. Service inflation is still sticky.”

• Joseph Brusuelas (RSM): “The market is overreacting. Household spending is still too hot, & the Fed probably won’t cut rates in the first half of 2025.”

WHAT DOES IT MEAN FOR YOU? 🫵

How can you use this to make money? Here’s what I’m sticking to.

• Tech’s Back, Baby: Lower yields = big tech thrives. Keep an eye on the Nasdaq. Pullbacks are buying opportunities.

• Volatility Isn’t Dead: Account for the volatility & you’ll be fine. I keep enough margin to cover me for weekly lows. The inflation fight isn’t over. The Fed’s rate cuts aren’t guaranteed. But volatility is the real money maker.

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That’s all! See you same time tomorrow 👋 

P.S Hit reply & let me know what you thought of today’s newsletter. All feedback is welcomed ❤️