Here's the Deal with Markets - December 9, 2024

Economy: In Slowdown

Market Cycle: Bullish

_{Week 48 of 52 for 2024: 92.3% of the way through 2024}

This Week in Markets

A Quiet Start to the Week
Monday and Tuesday were relatively uneventful, even with regard to Trump’s statement from Trump regarding 100% tariffs on BRICS. Fortunately, the markets seemed to take it in stride, signaling confidence in their expectations for the next four years. A reflection of having navigated similar political landscapes before (2017-2021). This is a positive sign for steady, rational market behavior to similar situations in the coming four years.

Market Resilience Continues
Markets are holding their gains, with small-cap stocks continuing to take the spotlight. Many have broken out, seen significant runs, and are maintaining those higher levels. A sign of underlying strength in this segment. However, it’s worth noting that while breadth remains strong, overall trading volume has been light recently. Additionally, advancers lagged behind decliners for all five trading days last week, hinting at some underlying hesitation (at least for now) after yet another wave higher.

Bitcoin Breaks Through $100K
Bitcoin finally crossed the long-anticipated $100,000 milestone, setting a new high at $103,992.99.

Meme Stock Mania
The meme-stock crowd is back in action, with familiar names rallying and Roaring Kitty posting again. Historically, this kind of activity has often preceded short-term retracements or corrections, so caution is warranted here.

Potential January Headwinds
Looking ahead, don’t lose sight of potential headwinds as we enter January. The looming budget debate, the increasingly high probability of a port strike, and the need for a debt-limit extension could inject uncertainty into the markets in the coming weeks.

A Slightly Weaker Week?
As we move deeper into the week, I wouldn’t be surprised to see some slight softness in markets this week, as it lines up with seasonality during an election year. Election years often bring quieter weeks during this time, and with some signs of hesitation already present, the stage may be set for a slight pullback… maybe.

The Market is Doing Its Job
The market is behaving as expected when expected, and that’s a reassuring signal amidst the usual uncertainties. It’s one less thing to keep you up at night, so take a moment to appreciate the calm. When markets align with expectations, it not only boosts confidence but also provides a steady foundation for planning ahead. Be sure to enjoy the stability while it’s here, as it means on less worry in life.

When its time to worry, I’ll let you know.

A Tribute to Art Cashin: A Legend on the Floor
Few names are as synonymous with Wall Street as Art Cashin. For decades, he was the steady voice that brought clarity to the perceived chaos of the trading floor. As Director of Floor Operations for UBS, seasoned veteran of the New York Stock Exchange, and regular on CNBC, Art Cashin helped initiate a new wave of market insights. Helping to bridge the gap between retail (you and I), and Wall St.

A true legend in the industry.

That’ll do it for this week’s Here’s the Deal with Markets. Economic Data to Watch, WTF of the Week, Earnings, and the Quote of the Week will return next week. But I’m at the beach on vacation now.

“It’s a bull market, you know.”

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