May 31, 2022

Markets:

S&P 500 futures fell in early Tuesday morning trade, as the momentum from a sharp rebound last week appeared to fade.

The U.S. stock market did not open Monday due to the Memorial Day holiday.

Tuesday’s moves came amid mounting concerns that rising inflation in the U.S. and around the world could slow down economic growth. In Europe, euro zone inflation hit a record high for a seventh straight month, surging 8.1% in May. In the U.S., the core personal consumption expenditures price index — the Fed’s preferred inflation gauge — rose by 4.9% in April from a year ago.

Worries over higher inflation also grew as oil prices jumped following the European Union agreeing to ban most crude imports from Russia. West Texas Intermediate futures rose about 3% to more than $118 per barrel. Brent crude, the global oil benchmark, rose 1.7% to more than $123 per barrel.

Traders will look through more corporate quarterly earnings during the holiday-shortened week. Salesforce, HP and Victoria’s Secret are expected to report earnings on Tuesday after the bell.

Portfolio:

We enter the new trading week holding positions in PLTR, IONQ, and ITRM.  End of month today and we expect a bit of rebalancing to take place as folks get ready for the new trading month as wel as the last month of the second quarter.  Energy prices are dominating right now and will be a strong point of focus this week.  Expect further swings but again we will remind everyone that this market is now respecting trend lines and bouncing where it's suppose too as well as breaking down where it's suppose too.  Not across the board but a number of sectors and especially specific name we watch.  This is an extremely positive sign and we hope to see it continue.  Be on alert today and expect a potential new trade setup.  Let's have a great session.