August 3, 2022

Markets:

U.S. stock futures traded higher Wednesday, as traders tried to regain their footing following back-to-back losing sessions.

Those moves came as Wall Street worried that House Speaker Nancy Pelosi’s visit to Taiwan could further strain already tense U.S.-China relations. China had spent weeks warning her not to make the trip. Markets fell further after three Federal Reserve presidents hinted that further rate hikes would be necessary to combat high inflation.

Traders also digested mixed remarks from Federal Reserve officials. St. Louis Fed President James Bullard said Tuesday he was confident that the U.S. economy could achieve a “soft landing.” Meanwhile, San Francisco Fed President Mary Daly said the central bank’s work to tame inflation is “far from done,” while Chicago Fed’s Charles Evans said there’s a chance for a smaller rate hike at the next monetary policy meeting.

Traders are also anticipating another batch of second-quarter earnings. CVS, Regeneron, Under Armour and Moderna will report before the bell Wednesday.

In economic data, investors this week are awaiting mortgage demand numbers and PMI data out Wednesday.

Portfolio:

We enter the new trading session holding positions in PLTR, MRO, SNAP, GRAB, and holding itrm. Well balanced and positioned in different sectors. Navigating this market well here and looking forward to the set-ups emerging. Queue is igniting and just trying to be patient as they form over the next session or so. No reason to get caught with head fakes and allow it to nicely develop. We love the price activity also forming with emerging markets.  This sector could be our next batch of opportunity. Be ready and let's have a great session.