November 8, 2022

Markets:

Stock futures were slightly higher Tuesday following a winning day for markets as investors looked ahead to U.S. midterm elections.

The moves come after a day when all major indexes notched a second straight positive session. The Dow Jones Industrial Average closed higher by 423.78 points, or 1.31%. Meanwhile, the S&P 500 gained 0.96%, and the Nasdaq Composite rose 0.85%.

Investors are awaiting Tuesday’s midterm election results. They will determine which party controls Congress and steer future policy and spending.

Any market reaction will likely hinge on whether Republicans take back the House of Representatives, the Senate or both.

Wall Street will also closely watch Thursday’s consumer price index report for the latest data on how much the Federal Reserve’s interest rate hikes have tamed high inflation. This reading could also signal the central bank’s path forward – another hotter-than-anticipated report could embolden the Fed to raise rates aggressively in December.

Treasury yields were little changed Tuesday morning as investors took a cautious view ahead of the U.S. congressional elections. The benchmark 10-year note last yielded 4.21%, virtually flat after popping last week following the Federal Reserve’s latest interest rate hike.

Portfolio:

It's Election Day!  And with that begins the stretch of trends and set-ups we historically love to follow during this period.  The next few months should provide stellar set-ups.  We enter today's session holding positions in GEO, WTI, TWNK, SOFI, and SNAP.  We would love to book a profit or two today and move into new opportunities close to triggering.  Today expect to receive non-stop election updates and expect some market movement from it.  Stay patient here but be ready to act as we could see a fairly busy session for us.  Let's have a great trading day and please go vote!