First, equities rallied and then they waffled. Over the final two and a half hours or so, stocks sold off on breaking news that the Trump administration would indeed implement tariffs on Canada, Mexico and China starting tomorrow. Then, very close to the close, buy programs showed up as traders closed out intraday shorts and cleaned up equity ETF exposure related to expiring options. 

Tech giant Apple AAPL behaved as did the day, only in microcosm. AAPL sold off after the closing bell on Thursday in response to its earnings release. Then the stock rallied overnight and into the Friday trading session. That rally evaporated as did the one held onto by the broader marketplace.

In response to the tariff news, the U.S. Dollar Index gained, Treasury yields spiked and then moved back in, and both gold and Bitcoin struggled. 

For the day, the S&P 500 gave up 0.5%, as the Nasdaq Composite was slapped around for a loss of 1.64%. Ten of the 11 S&P sector SPDR ETFs finished the Friday session in the red, led lower by Energy XLE at -2.9%. Only Communication Services XLC closed out the day in the green. Chevron CVX and Nvidia NVDA were the losers among the Dow 30, while Amazon AMZN led the three stocks that closed higher.

It was a fairly wild day. During the lunchtime lull, we had some fun playing Super Bowl trivia given the season. Don't get me wrong. I am a baseball guy who played hockey, but I know that football is the American pastime now, and that was good for a change of pace. 

Now, I want all of you to have a nice weekend. May God keep you and yours safe and healthy and may our paths cross again soon. I believe Dougie will be back on Monday. We have January Jobs Day next Friday and a plethora of Fed speakers set to speak throughout the week. Take care now...

Your Friend,

Sarge

From Seeking Alpha:

Ethereum added as a new long idea at Hedgeye

Kratos Defense & Security KTOS, after breaking out of a slowly rising regression trend model, finds help above its 21-day EMA. 

The trick now is to avoid developing a double-top reversal pattern.

Apple Scraps Work on Mac-Connected Augmented Reality Glasses (AAPL) - Bloomberg

Q) On January 18, 1976, in Super Bowl X, L.C. Greenwood of the Pittsburgh Steelers sacked Roger Staubach of the Dallas Cowboys four times in Pittsburgh's 21-17 victory. That still stands as the single-game Super Bowl sack record. Who is the all-time Super Bowl career sack leader? This is sort of a trick question.

A) L.C. Greenwood who played in four Super Bowls for the Pittsburgh Steelers in the 1970s, only had one sack away from Super Bowl X. However, his five Super Bowl sacks are enough to make him the all-time Super Bowl career sack king. Willie Davis of the 1960's Packers, Charles Haley of the 1980's 49ers and 1990's Cowboys, and Von Miller of the modern day Broncos and Rams all have 4.5 career Super Bowl sacks. Miller is still playing (with the Bills), so he could break the record. 

Nvidia NVDA lost the 21-day EMA, 50-day EMA and the lower trendline of the Pitchfork on Monday. The shares have made no real attempt to regain any of those levels, but they have hung on to the 200-day SMA for dear life. 

Lose contact with that line and lose me, Jensen. 

On January 18, 1976, in Super Bowl X, L.C. Greenwood of the Pittsburgh Steelers sacked Roger Staubach of the Dallas Cowboys four times in Pittsburgh's 21-17 victory. That still stands as the single-game Super Bowl sack record. Who is the all-time Super Bowl career sack leader? This is sort of a trick question. 

Note: This will destroy me. I eat more eggs than most. 

Palantir PLTR breaks out past a cup and handle created $82 pivot amid this morning's 4.4% pop.

The company reports on Monday. Should the pivot hold, I will have to increase my already street-high $90 target price.

Check out this morning's top movers from around Wall Street, compiled by The Fly.

UP AFTER EARNINGS -

• Apple (AAPL) up 4%
  
  
• AbbVie (ABBV) up 5%
• ArcBest (ARCB) up 3%
• Charter (CHTR) up 2%
• Revvity (RVTY) up 2%
• Exxon Mobil (XOM) up 1%
• LyondellBasell (LYB) up 1%
• Novartis (NVS) up 1%
• Visa (V) up 1%
• Intel (INTC) up 1%

DOWN AFTER EARNINGS -

• Colgate-Palmolive (CL) down 3%
• Booz Allen (BAH) down 3%
• Autoliv (ALV) down 2%
• Chevron (CVX) down 1%
• Church & Dwight (CHD) down 1%
• OneMain (OMF) down 1%

PCE Inflation (December): +0.3% m/m as expected, up from +0.1%. +2.6% y/y, as expected, up from +2.4%.

Core PCE Inflation (December): +0.2% m/m, as expected, up from +0.1%, +2.8% y/y, as expected, in line with November.

Employment Cost Index (Q4): +0.9% q/q, as expected, up from +0.8%.

Bottom Line: Inflation continues on its path of re-acceleration. The Hedgeye nowcast model shows a base case for CPI growth of 3.05% y/y for January,up from an actual pace of 2.9% in December.

From Bloomberg News:

US Probing If DeepSeek Got Nvidia Chips From Firms in Singapore - Bloomberg

S&P Futures: +25 vs FV.

Nasdaq Futures: +165 vs FV.

US Dollar Index: 108.26, +0.43%.

WTI Crude: $72.63, -0.14%

US Ten Year Note: 4.53%

US Two Year Note: 4.22%

US Three Month T-Bill: 4.29%

Gold: +0.06%

Silver: +0.59%

Bitcoin: -0.14%

Happy Friday! You've made it this far. Dougie is off today. Your old buddy Sarge is here to pinch hit. So, let's rip those greasy melons away from those disgusting things you call pillows and get fired up. 

We're gonna wind it up, wind it up until we're ready to rock. Shake out the cobwebs. Whatever you can do. Push-ups, sit-ups, crunches. If it's all you can muster, low-crawl over to your coffee maker and turn that sucker on.

For this day is born. A new day. A new chance for victory. A new day to be challenged, because just whom amongst our ranks does not love the game itself. Sure, it's a living and we love winning, we have to win, if not on a winning percentage basis, at least on a profit/loss basis. That said, even losing has value. Losing teaches. Losing humbles. Knowing defeat makes victory taste that much sweeter.

So, prepare ye for the day ahead. They may come at us in hordes. We may have to invent new ways to defend ourselves and defend ourselves we shall. Plant the flag. Load those belts. Dig in. Fill those sandbags... and let them try. For here, we are the masters of our lives and our fortunes. Our folks depend on us, and we will not let them down. 

For glory, my sweet band of stalwarts. In glory there is esprit de corps. In esprit de corps, we are one. As one we fight. Let us rock.