August 23, 2022

Markets:

Stock futures inched higher Tuesday as the market tried to recover from its worst day since June.

Palo Alto Networks surged in the premarket on the back of strong quarterly results, while Zoom Video shares slumped after the video conferencing company lowered its full-year forecast.

Wall Street is coming off a downbeat session, as a summer rally continued to fade amid mounting rate hike concerns.

The Dow dropped more than 600 points Monday, while the S&P 500 and Nasdaq Composite fell more than 2% each. Those were the biggest one-day drops for the Dow and S&P 500 since June 16. The Nasdaq suffered its worst session since June 28.

Tech stocks recovered somewhat from Monday’s rout. Megacap companies Amazon and Apple were up 0.53% and 0.28% in Tuesday premarket trading, respectively.

Earnings season continues Tuesday with results from Macy’s, Nordstrom and Dick’s Sporting Goods. July new home sales will also be reported, along with August manufacturing PMI and the August Richmond Fed survey.

The Euro Stoxx 600 Index slipped 0.3% in early deals with media stocks the biggest laggard. Shipping firm Maersk saw its shares dip 2.7% after a price target cut for Citi.

Oil stocks rose by 1% after some steady buying in the commodity markets on Monday afternoon. Both WTI and Brent crude were higher for the session on Tuesday morning.

Portfolio:

We enter the new trading session holding positions in CVE and TELL. CVE and TELL looking explosive and we love this sector right now and the setups emerging here. Mix bag yesterday booking a nice profit but losing another. Traders are trying to front run Powell at the end of the week and this is causing some wild swings. Classic sell the event taking place, but this can generate a powerful snap back. We patiently wait.

The queue was igniting with force towards the end of the session with potential set-ups developing. Will be interesting today to watch price activity early on and see if we can get continuation with these setups. Be ready today. Let's have a great session and stay patient. The best set-ups will come from this price activity!