Before we start, I'm going to close out our current Power Plays positions in Nvidia (NVDA), Amazon (AMZN), and Meta (META).

We took off 1/3 NVDA into the Monday CES event, but in hindsight, I probably should have closed the whole thing out on Tuesday's rally.

AMZN will be a small loss. I suspect we'll get a better setup in the future.

And META will be a small gain.

The market is not responding well to the hot jobs report, which is no surprise given that computers are programmed to sell based on how numbers hit.

Traders are still starting to price in a more hawkish environment in 2025, which makes it a tougher time to have risk on.

Technicians have been concerned about a potential head & shoulders pattern triggering in the SPY.

And with rates on the rise, there is risk of a move down to SPY 565. That would be about 7% off the highs. Not a disaster, but plenty of stocks would be hit hard along the way, particularly growth names. That's why I'm flattening out for Power Plays.

Disaster is not guaranteed -- I'm just playing the probabilities as I see them.

I've been taking risk down all week, and I did even more today.

Based on the reaction to the jobs report, it looks like we're not escaping this ugly range trade anytime soon, meaning it's harder to find anything that can actually trend.

On the positive side, if we do get a drop to the SPY 565 area, that could be an opportunity to scoop up longs again.

Either way, I'll be closely watching for new ideas.

Have a good weekend, and be careful out there!

-Scott