March 14, 2022
Markets:
Dow futures rose Monday to kick off an important week, as the Russia-Ukraine war continues to escalate and the Federal Reserve could hike rates for the first time since 2018.
Ukraine and Russia resumed talks on Monday. A Ukrainian official said the country’s objectives were to secure a ceasefire and an immediate withdrawal of Russian troops, along with other security guarantees.
Fighting has intensified around Ukraine’s capital, Kyiv, while Russian forces bombard cities across the country, killing civilians who are unable to escape. The financial fallout of stiff Russian sanctions will come into sharper focus in the coming days ahead of a scheduled sovereign bond payment.
Commodity prices, which had been surging recently amid the conflict, cooled off on Monday.
U.S. Treasurys also sold off, pushing yields sharply higher. The benchmark 10-year yield jumped more than 8 basis points to 2.08%, its highest level since July 2019. The 2-year rate climbed 7 basis points to 1.82%. One basis point equals 0.01 percentage points.
The Fed is expected to raise its target fed funds rate by a quarter percentage point from zero at the end of its two-day meeting Wednesday. Investors are also looking to the central bank for its new forecasts for rates, inflation and the economy, given the uncertainty from the escalated geopolitical tensions.
Portfolio:
Great start to the month for us and actually the year! We enter the new trading week holding positions in TWI, CCJ, JBLU, DKNG, CORN, and ITRM. We will be adding this week so please be ready for new trades and updates. The much anticipated Fed meeting is this week. Cannot wait for this event to pass and the markets to begin to move forward. The opportunities in the coming weeks will be our greatest yet. Once again, we remind you; be patient and be ready! The periods to come are the ones to take full advantage of. For now, we continue to navigate this market and book these quick trade opportunities we have been identifying. Let's have a great session.