OP Wire 11/25 (OP – Lite)

Scott Bessent Nominated as US Treasury Secretary

President-elect Donald Trump has nominated seasoned fund manager Scott Bessent as the incoming Treasury Secretary. Known for his extensive experience in finance—including stints with George Soros and Jim Chanos—Bessent’s appointment has reassured markets. Seen as a mainstream choice, his policy priorities include making Trump’s initial tax cuts permanent, eliminating taxes on tips, Social Security benefits, and overtime pay. He also emphasized gradual tariff implementation and deficit reduction measures, aiming to curb U.S. debt by targeting spending cuts.

Market Reaction:
Bond yields fell, pulling the dollar lower, while stock futures rose, reflecting investor confidence in his pragmatic approach.

Positive Futures Outlook Ahead of Thanksgiving

US stock futures are poised for a strong start this week. As of early Monday:

• Dow Futures: +260 points (0.6%)
• S&P 500 Futures: +25 points (0.4%)
• Nasdaq 100 Futures: +90 points (0.4%)

Last week, the Dow closed at record highs, rising 2%, while the S&P 500 and Nasdaq gained 1.7%. This week’s key data point will be Wednesday’s PCE Price Index—the Fed’s preferred inflation gauge. Traders will closely watch this report ahead of the Fed’s December meeting

Retail Sector Spotlight: Holiday Season Kickoff

With Thanksgiving and Black Friday approaching, the retail sector takes center stage. Key earnings reports this week include:

• Monday: Bath & Body Works (BBWI)
• Later this week: Best Buy (BBY), Macy’s (M), Nordstrom (JWN), Urban Outfitters (URBN)

Recent earnings provided mixed signals: Walmart raised its profit forecast, while Target warned of weaker holiday sales

Investors will monitor consumer spending trends, crucial for the U.S. economy.

UniCredit’s Bold Move: European Banking Consolidation

Italy’s UniCredit surprised markets with a €10 billion bid for Banco BPM, aiming to create a powerhouse in European banking. The deal, independent of its proposed Commerzbank acquisition, could reshape Italy’s banking landscape. This sector has long been viewed as ripe for consolidation, with UniCredit often mentioned as a key player

Oil Prices Retreat on Ceasefire Prospects

Crude prices fell Monday following reports of a potential Israel-Hezbollah ceasefire. Reduced geopolitical risk could stabilize the oil market after last week’s 6% surge—its best performance since late September.

NQ – last week the main focus was how price responds to the 20450 level, where heavy volume concentrated from the prior 6-week range. If buyers stepped in to defend this high volume node, price will target 20700, 21000, and 21200.

Buyers did indeed step in to defend the 20450 level of interest, with a week that was characterized by a smaller than usual weekly timeframe move, but some incredible two-way trading. The weekly high was marked at 20905, just shy of the second upside level we were looking for.

This coming week will be a short one, with the markets closed on Thursday and a half day on Friday. My suggestion is to watch for setups Mon-Wed, and take Th-Fri off. The entire week will likely be trading with holiday volume, so the action can be slow. Use our proven systems as we do!

The main focus will be how price trades versus the 20900 level of interest. If sellers continue to defend this point, price can retest 20700, 20500, and 20200. If buyers continue to show follow through from last week, price can test 21200, 21340 (ATH), and 21600. Keep Stacking 

Congrats OP on NLST. The future remains bright on this one after Fridays ruling. 

See you all in chat with today’s upgrades and downgrades plus more breaking stock news as it comes. 

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