Power Plays Weekly Roundup
January 5, 2024

By Scott Redler

2024 has been tricky to say the least.

Looking back, it seems like the big November-December rally robbed January of a lot of potential returns.

The major indices are down to start the year, with small cap and tech showing relative weakness.

We're getting some modest upside today following decent economic data today, including the jobs report, but it's nothing to get excited about.

SPY has resistance above in the $471 to $473 area. That's where the bulls need to break through to generate more upside.

For now it's time to pick our spots carefully and control our risk.

Now let's go over our Power Plays:

Eli Lilly (LLY) came into Power Plays on Tuesday and took off fast. In fact, at one point this week it was the #1 performing name in the SPX. We took off half into strength on Wednesday. As long as it holds the $605 to $608 area, it has the potential for big gains.

Alphabet (GOOGL) is back in price discovery mode after a nice move in December. In retrospect, we should have taken something off into strength. But it looks better than most tech names and we're sticking with it.

Amazon (AMZN) has been a disappointment in early 2024, but it's still hanging in there. If tech sets up again, this should lead nicely to the upside.

SPDR Gold Trust (GLD) is still one of my favorite plays for the year. It reacted well to this morning's economic data, and the daily, weekly, and monthly charts all look good. A move above $193 could ignite it.

UiPath (PATH) has been a frustrating name to say the least. If it breaks down towards the $22 area it will probably be time to switch gears. It would help if small caps rebounded.

Microsoft (MSFT) has been tricky as of late, though it showed some relative strength today. I'd still like to see it get over the $377 area.

Have a great weekend!


Scott Redler Positions Disclosure as of 2024-01-05 at 11.21.27 AM