Good evening. The S&P 500 ended the week down -0.5%. Here are the top stocks to watch this week, the first full week of 2025, and what’s moving the markets.

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Toy Drive 2024 - SUCCESS!

I want to thank everyone who participated in our yearly toy drive. Together, we brought smiles to 222 children!!!

For many of them, that might have been their only holiday celebration in 2024, as they spent the season at Mount Sinai Kravis Children’s Hospital.

Enjoy this short video, and I wish you all a good start to 2025!

Top Stocks & Setups To Watch This Week

• $AAPL
Break above 250.42 🎯 253.50 & 258.21
• $META
Break above 614.20 🎯 629.79 & 638.40
• $MS
Break above 128.03 🎯 130.52 & 133.19
• $DAL
Break above 61.26 🎯 62.95 & 64.86
• $CAT
Break above 376.07 🎯 385.93 & 395.47
• $MU
Break above 91.10 🎯 95,53 & 99.95

KV’s S&P 500 Levels

Weekly Market Recap

2025 Outlook

The S&P 500 closed 2024 with 57 record highs, marking its second consecutive year of 20%+ gains, led by mega-cap tech. Looking to 2025, topics such as policy uncertainty around tariffs and taxes may introduce volatility, but fundamentals such as aggressive economic growth, rising corporate profits, and easing Fed policy suggest stocks and bonds can continue their positive momentum.

Soft Landing Ahead

The U.S. economy grew at 2.7% in 2024, driven by resilient consumer spending and stabilizing manufacturing. The Fed slowed rate cuts in December, signaling a cautious approach, with rates likely settling in the 3.5%–4% range in 2025. Inflation remains contained, but uncertainties around pro-growth policies and inflation pressures could influence the Fed’s pace. The focus remains on a steady disinflationary trend.

Diversification and Bonds

Market leadership broadened in late 2024, offering opportunities in undervalued small-caps, value stocks, and cyclical sectors. Meanwhile, bonds are poised to outperform cash as yields stabilize in the 4%–4.5% range. Investors should balance portfolios, stay realistic about moderate gains, and use pullbacks strategically. Healthy fundamentals and earnings growth provide optimism for continued market resilience.

Coming Up…

Important economic releases this week include the ISM services PMI and nonfarm payrolls for December. On the earnings front, TLRY, DAL, and WBA are expected to report this week.

Key Headlines We’ve Been Reading

This is what’s caught our eye over the past 7 days.

• South Korean authorities seek warrant to detain impeached President Yoon in martial law probe.
• Germany accuses Musk of election meddling over AfD support.
• ECB’s knot says trade war could export China deflation to Europe.
• Alibaba to sell China’s Sun Art to buyout firm at big discount.
• PBOC steps up liquidity injection with new tools at year-end.

Trading Quote Of The Week

That was it for this week!

Stay safe,
KV 👋

Week #1 | January 5, 2025

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