January 19, 2022

Markets:

Stock futures gained Wednesday morning to steady after a broad sell-off a day earlier, as investors nervously eyed soaring bond yields and mixed earnings results from some major index components. 

Meanwhile, Bank of America (BAC) shares gained in early trading after the company topped estimates for quarterly loan growth and posted a jump in profits in its key consumer banking business. Procter & Gamble (PG) also rose after the company exceeded expectations in its latest results and raised its sales guidance for the full year, with higher prices from the company helping boost results.  

Treasury yields built on recent gains, and the benchmark 10-year yield neared 1.9% for its highest level since January 2020. Commodity prices also advanced further, and U.S. West Texas intermediate crude oil futures rose above $86 per barrel.

Though Fed officials are in a blackout period before their next meeting next week, policymakers over the past several weeks have telegraphed that they are gearing up to raise interest rates and eventually draw down the nearly $9 trillion on the Fed's balance sheet as the economic recovery continues and inflation soars. 

Portfolio:

We enter the new trading session holding positions in APA, F, ZION, and continue to hold itrm here.  

Markets continue to swing and move lower but currently respecting trend lines we are monitoring.  This price activity has and will continue to create massive opportunity for those who patiently wait. Small caps have been absolutely decimated.  Growth has been decimated.  These earning reports will be massive for these sectors and we cannot wait.

Please be ready today for further updates as well as new trade alerts.  Let's have a great session.