January 4, 2023

Markets:

Stock futures traded higher Wednesday as Wall Street tries to recover its footing after a tough first session of the year.

Sentiment was boosted in part by encouraging inflation data from Europe, including a greater-than-expected decline in the French consumer price index and a drop in German import prices.

U.S. stocks started 2023 on a downbeat note Tuesday as rising rate concerns, high inflation and recessionary fears crushed hopes that Wall Street could kick off the new year on a positive note. The S&P 500 and Nasdaq Composite lost 0.4% and 0.8%, respectively, while the Dow closed just below breakeven. The major indexes were also pressured by steep declines in Apple and Tesla shares.

Investors will gain more insight into what Fed members are thinking on Wednesday afternoon as minutes from the central bank’s latest policy meeting are released. Earlier in the day, the Job Openings and Labor Turnover Survey, or JOLTS, and ISM manufacturing data are due out.

Friday’s December jobs report also will be closely watched as it is the last read on the labor market before the Fed meeting in February.

Portfolio:

We enter the new trading session holding positions in ZIM, FAZ, AAL, and ZIM.  Continued roller coaster type of price activity and the market refused to allow the S&P to close below 3800.  Went an algo fight in the final hour of trasing and we saw a monster come back and close.  It'll be interesting to see how the market behaves and how price activity emerges and closes after yesterdays session.  Could see a short term bull case to 3900 but could also see a bull trap and then pulling the rug.  Hope to see volume increase today as well really want to see this trend line be broken soon – either way.  

Be ready today and be prepared for further price swings.  Let's have an incredible session.