September 29, 2021

Markets:

Stock futures pointed to a higher open Wednesday morning, recovering some of Tuesday's losses as Treasury yields pulled back from multi-month highs.

The decline in technology stocks came as Treasury yields rapidly rose, with the swift move higher in borrowing costs pressuring valuations for growth and technology stocks. 

The yield on the benchmark 10-year note spiked to as much as 1.56%, or its highest level since June, before pulling back to just over 1.5% Wednesday morning. The 10-year yield has also risen markedly over a relatively short period of time, gaining more than 16 basis points from its low from last Friday to its peak on Tuesday.

In Washington, lawmakers are racing to pass legislation to fund the government beyond the end of the fiscal year on Thursday. Republican lawmakers have balked at tying a continuing resolution to fund the government with a measure to raise the debt limit through the end of 2022, putting lawmakers at an impasse ahead of a Thursday night deadline to avert a shutdown. This also comes alongside ongoing debates around a bipartisan $1 trillion infrastructure deal and $3.5 trillion budget reconciliation package, with key actions on each of these also set to take place later this week. 

Portfolio:

We enter today’s session holding positions in MMAT, MOSY, OPEN, SPPI, OCGN, and ITRM.  Outstanding month of September for us and now we turn our focus on the opportunities created over the last weeks price activity and the sectors we need to attack over the last quarter of 2021.  We are entering what has historically been our best performing quarter within the calendar year.  The excitement for the fourth quarter is high and now let's end 2021 with strong returns!  Let's have a great session and please be ready today!