March 8, 2023

Markets:

U.S. stock futures were little changed Wednesday, a day after a selloff spurred by Federal Reserve Chairman Jerome Powell’s comments indicating interest rates may need to go higher for longer.

The shakeup in markets came after Fed Chair Powell spoke before the Senate Banking, Housing and Urban Affairs Committee. He cautioned lawmakers that the central bank’s terminal rate will likely be higher than previously anticipated due to stubbornly high economic data in recent weeks.

On Wednesday, investors will be closely watching Powell speak before the House Financial Services Committee. Separately, Richmond Fed President Tom Barkin will also be speaking on the labor market Wednesday morning. January’s job openings and labor turnover data is due, as is the ADP jobs report for February.

Bond yields surged on Tuesday, and a range of short-term Treasurys saw their rates exceed 5%.

The rates on 3-month, 6-month, 1-year and 2-year Treasury notes leapt over 5% on Tuesday. At their highs, rates on the 3-month T-bill and 2-year Treasury surged to levels last seen in 2007, while the yield on the 1-year note touched its highest level since 2006.

Portfolio:

We enter the new trading session holding positions in YEXT, S, and CENX. We will be looking to add a new position today. Heading Into yesterdays close and after hours you thought the markets were in complete melt down mode by the media and headlines you would see crossing through. Here we are and future are up a bit and market continues to fight technically. Unless we break below 3890 on the s&p and hold it, I do not see how anyone can front run that move. Imagine if we only base and build higher from here? The hated rally! Watching closely and following momentum / technicals. Best trading move in 2023 hands down. Stay ready and let's have a great session today.