January 31, 2023

Markets:

Stock futures declined Tuesday as traders wrap up what has been a strong month for equities.

It’s been a stellar January for stocks, otherwise. As of Monday’s close, the S&P 500 and Dow are up 4.64% and 1.72% in January, respectively, and headed for their third positive month in four. The S&P 500 is also on track for its best January since 2019. The Nasdaq Composite has risen 8.86% this month, putting it on pace for its best monthly performance since July.

However, a busy week of earnings could put this recent rally in jeopardy. Investors are watching closely for comments on how some of the largest companies are faring amid high inflation and fears of slowing consumer spending.

Attention also turns to the latest interest rate decision due out of the Federal Reserve’s latest policy meeting kicking off Tuesday. Traders widely expect a 25 basis point increase, but will monitor commentary for clues into how much further the Fed intends to hike, or when it plans to cut rates.

The International Monetary Fund on Monday revised upward its global growth projections for the year, but warned that higher interest rates and Russia’s invasion of Ukraine would likely still weigh on activity.

Portfolio:

We enter the new trading session holding positions in TSLL and AEHR. After a great run up to end the month we are at a bit of a standstill awaiting the Fed. The next two sessions expect further turbulence – as expected and this is ok! Our trend lines are all that matter and how money continues to flow to it. Right now, we patiently await. No need to force any trades here and wait for set-ups to emerge from this Fed event. Simple as that. Once this is completed, we proceed and better believe massive opportunity. Stay patient and be ready for further updates as needed.