February 21, 2023

Markets:

U.S. stock futures fell Tuesday as higher rates continue to pressure market sentiment.

Home Depot shares fell 3.8% in the premarket after the home improvement retailer posted weaker-than-expected revenue for the fourth quarter.

The benchmark 10-year Treasury yield climbed to 3.87%, while the 2-year rate advanced to 4.669%. Those moves build on last week’s gains for yields, which rose as traders grappled with hotter-than-expected inflation data. Traders are worried that stubborn inflation will lead the Federal Reserve to keep rates higher for longer — which could tip the economy into a recession.

The Fed on Wednesday is scheduled to release the minutes from its meeting of Jan. 31 and Feb. 1. The central bank hiked rates by 25 basis points after that meeting. The Federal Reserve’s release of it’s Jan. 31-Feb. 1 meeting minutes could be a market-moving event this week, as traders continue to search for clues on the central bank’s next policy moves.

Portfolio:

We enter this shortened trading week holding positions in VKTX and PLTR. Another outstanding month coming to a close with one week left of trading. We begin to set ourselves up for March and the opportunity the final month of the quarter will bring. Absolutely love the activity in the queue and the volume sparking certain set-ups within specific sectors. Today's trading activity will be closely monitored. As we expected and stated in Fridays pre, do not be surprised to see a market turn and finish potentially green. Exact price activity developed Friday and now this morning we want to evaluate how the market reacts / behaves and the trend lines that hold. By market close today, we should have an idea where we are technically. Be patient here and be ready to act. Let's have a great week.