February 25, 2022

Markets:

Stock futures fell Friday morning following a sharp reversal on Wall Street as investors continued to assess the risks stemming from Russia’s invasion of Ukraine.

Commodity prices were mostly in the red, with natural gas futures off 2.3% to $4.53. Oil edged lower, with Brent crude dipping to $98.83 after lurching above $100 on Thursday.

Government bond yields were slightly higher. The benchmark 10-year Treasury note yielded 1.986%, up 1.4 basis points on the session. A basis point is 0.01%. Yields move opposite prices.

During Thursday’s regular trading session, the market was initially spooked by Moscow’s invasion of Ukraine using land, air and naval forces. The S&P 500 was down as much as 2.6% during the session but closed up 1.5% higher despite the outbreak of violence.

Despite Thursday’s wild intraday reversal, major averages are on track for their third negative week in a row amid escalated geopolitical tensions and worries over monetary policy. The Dow is down 2.5% this week, on pace for its worst weekly performance since Jan. 21. The S&P 500 and the Nasdaq have fallen 1.5% and 0.6% this week, respectively.

All three averages are still in correction territory, or down 10% or more from their respective record highs. The Nasdaq opened Thursday’s session in bear market territory, down more than 20% from its record high in November.

Positions:

What a day yesterday!  Wild swings.  We enter the new trading session holding positions in VTRS, NOV, and ITRM.  We managed to book a few profits yesterday but also were stopped in BMBL with the crazy upturn in the afternoon.  BMBL had incredible price activity to the downside.  In fact, for options, they were coming after the 20's with force.  We might revisit BMBL again.  Today could be another wild session, especially with the weekend upon us and fear of holding with the unknown taking place in Ukraine and how much further this escalates.  But as we keep reminding everyone; insane opportunity is being created.  We patiently wait.  Keep riding the trends.  Be ready today and I cannot stress it enough; be ready for next week!  Let's have a great session.