[b]SA Markets – January 17th, 2025[/b]

Market Overview:

• []Asia: Markets started red but turned green later in the day.
  
  • []China: Up for the fourth consecutive day.
    []Nikkei (Japan): Trading in its lower range with a slight bounce, but not significant.
    
  []Europe:
  • []EU50: Reached an all-time high, coming out of a long base stretching back to March 28th, 2024.
    []Positive sentiment driven by lower inflation data and expectations of reduced rates.
    []Germany and France: Both showing strength, with Germany also reaching a new all-time high.
    []STOXX 600: Still trading below the range it has been stuck under since May 15th, 2024.
    

Bitcoin and Cryptocurrencies:

• []Bitcoin: Trading above $100,000, currently at $102,000. Last time it was at this level (January 6th), it was quickly rejected.
  []Ethereum: Third inside day.
  
• Solana: Testing highs from January 6th, with news that it might be included in Trump’s reserve holdings.
  

IBD 250 Pre-market:

Mixed bag with some red names but many showing green and gapping up pre-market.
Screener Results:

• []20% Gainers (Past Week):
  • []31 names, led by Constellation Energy.
    []Sectors include health technology and commercial services.
    
  []8% Gainers (Past Week):
  • []294 names, with notable strength in luxury names, Bitcoin-related stocks, and finance.
    []Louis Vuitton: Stands out, up 10%.
    
  []8% Losers (Past Week):
  • []156 names, including Toyota, Porsche, Las Vegas Sands, Snap, and GameStop.
    []Dominated by health technology, electronic technology, services, and utilities.
    
  []20% Losers (Past Week):
  • []31 names, primarily in health technology.
    []Notable losers include Moderna and FDA Aviation.
    

ETF Highlights (Yesterday):

• []Strongest: XLU (Utilities), XLRE (Real Estate), and Broker-Dealer ETFs.
  []Weakest: Regional Banks, Oil, and Uranium ETFs.
  

Additional Observations:

• []Rate-sensitive sectors showed strong performance yesterday, benefiting from recent inflation data.
  []RSP (Equal-Weighted S&P): Above the 50 EMA, showing strength and indicating that breadth is holding up despite weakness in large-cap names.
  
• VIX: At 16, showing an inside day with no major moves lower.
  

Plan of Action:

• []Exercise caution with new trades after several strong days in the market.
  []Await a pullback before adding positions, focusing on names with potential for strong 3-5 day moves.
  []Start small with any new positions as the market might need time to cool off.
  []Upcoming Events to Watch:
  • []Monday: U.S. markets closed for a holiday.
    []Next Week: Potential market movements with the inauguration of a new president.