Power Plays Weekly Roundup
January 3, 2025
By Scott Redler
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Welcome to the first Power Plays Weekly Roundup of 2025!
Day 1 of 2025 was pretty shaky, but things are looking up today.
Tech and small caps are outperforming.
And the semiconductors, which led in 2023 and 2024, are up nicely today.
We're also seeing some decent January Effect action, with beaten down groups like energy, biotech, and cannabis seeing some upside to start the new year.
Right now, I want to see the SPX get and stay over the 5935 area. That would stop the bears from getting too much confidence and taking the ball.
Plus, it would quell fears that a bigger head & shoulders pattern is forming to kick off 2025.
The reality is that the market has put in huge gains for the past 2 years, so it's not unfair to expect a little excess to be worked off.
We'll continue to be on the hunt for new opportunities, but we have to keep that head & shoulders scenario in the back of our minds.
Now let's dig into our names:
Nvidia (NVDA) looks ready to regain leadership status among the Mag7. Plus, Jensen Huang's CES Keynote on Monday could generate some excitement.
Amazon (AMZN) is also primed to outperform among the Mag7, and should build back towards the highs as we head into earnings season.
Meta Platforms (META) is off its highs but is holding in just fine. I would not be surprised to see it accelerate next week.
United States Natural Gas Fund (UNG) has been hit hard over the past few days - which is why I'm glad we took off 2/3 at higher prices. Natural gas is volatile by nature, so we did the right thing by playing it safe.
Have a good weekend!
-Scott
Scott Redler Positions Disclosure as of 2025-01-03 at 11.02.34 AM