January 6, 2023

Markets:

U.S. stock futures jumped a bit on Friday when the December jobs report showed that employment was only slightly stronger and wage gains were less than expected, showing some signs of progress amid the Federal Reserve’s interest rate hikes to tame inflation.

The Dow on Thursday fell more than 300 points Thursday after the release of a stronger-than-expected ADP private payrolls report. This raised concern for higher Federal Reserve rates, which in turn stoked fears that the U.S. could fall in to a recession soon.

Citi has cut its rating on U.S. equities to underweight heading into the new year, partially due to the dollar’s strength waning.

European markets were cautious on Friday morning ahead of key inflation data for the euro zone, which is expected to show a further slowdown in consumer price increases.

Portfolio:

We enter the last trading session of the week holding set-ups in in PDSB, CPRX, and FLYW.  We will be watching trading responses very closely today, thus far premarket has responded well to the jobs report, but let's see if this holds and where it goes technically.  Wage inflation numbers were positive for the bulls but I'm curious if the market is ready to accept a "soft landing" here.  If it is….could we push through 3900?  We still remain in the range, stay patient and the break – one way or another is coming and it will be glorious for traders to technically jump on.  Be ready today for further updates and a potential new trade alert.