March 15, 2022

Markets:

Wall Street’s main benchmarks were near breakeven in pre-market trading Tuesday after stocks closed mostly lower to start the week. Investors continued to monitor the Russia-Ukraine war and braced for a key monetary policy decision due out of the Federal Reserve Wednesday that could place short-term interest rates above near-zero levels for the first time since 2018. A COVID outbreak in China also presented new headline risk for traders to digest.

Commodities extended a streak of gyrations. WTI Crude Oil futures fellow below $100 to around $95 a barrel, 27.72% from record intraday high of $130.50 last week. Gold futures erased 1.8% to trade at $1,925.10 per ounce after recently topping $2,000.

China recorded a sharp rise in daily COVID-19 infections on Tuesday, with new cases more than doubling from a day earlier to hit a two-year high. The surge in infection raising questions about the economic cost of the country’s ultra-strict zero-COVID policy.

In the U.S., markets may be little-shocked when central bank officials unveil the upshot of their two-day policy-setting meeting Wednesday after Federal Reserve Chair Jerome Powell signaled in recent Congressional testimony that he supports an increase of 0.25%. But traders will watch closely for possible changes to the Fed’s outlook on hiking plans for the remainder of 2022 as war in Eastern Europe hangs over the global economy.

Although Russia’s invasion of Ukraine has curbed the chances of a 50-basis point hike this month, escalating geopolitical turmoil — with no off-ramp in sight — raises a new set of uncertainties for the U.S. economy and complicates the Fed’s path forward on taming inflation.

Portfolio:

We enter the new trading session holding positions in JD, JBLU, CORN, and itrm. Wild session yesterday from overnight futures through end of day close. Traders continue to position themselves for Wednesdays Fed decision on rate hikes, etc..

Today, we will be looking to add a new opportunity potentially. Gtreat start to the week for us yesterday.  Our excitement comes for this market after the Fed decision. We want this event to come and pass and allow the market to digest and move forward. The next several months should be filled with outstanding opportunity. This is just beginning. Let’s have a great session.