What a week!

Santa Claus came early this week, especially for the small caps, as the Fed came out way more dovish than expected on Wednesday.

I'm still in "let's be optimistic but careful" mode.

I lightened up my long exposure into today because between the QQQ rebalance and options expiration, the action could be erratic.

As you can see in my disclosures below, I still have a number of options positions on because we could still see more upside, especially in big-cap tech, once we get through the next day or two.

There is some risk the market is getting overbought so we'll be careful in adding new names.

Now let's go over our Power Plays:

Alphabet (GOOGL): we added GOOGL last Thursday after the positive reception to the Gemini AI release. The stock has been choppier than I'd have liked and didn't participate in the rally. It looks fine for now but I'll keep it on a short leash, just in case.

Amazon (AMZN) took a little hit on concerns about the QQQ rebalancing, but it looks set up to rally. It could break through $150 with authority next week which should set the stage for a solid year-end run.

SPDR Gold Trust (GLD) is one of my favorite plays into 2024. It got a big rebound on the FOMC's dovish commentary, and I still expect a big run in 2024, thought it might need to digest near-term.

UiPath (PATH) looks like it's finally getting ready to break out. It's one of my favorite AI names for the New Year, and I believe it can see the $30 to $32 area in the months ahead.

Have a great weekend!

-Scott