April 14, 2023

Markets:

Dow Jones Industrial Average futures gained Friday as investors kicked off the start of corporate earnings season with results that came in stronger than expected.

Major banks reported better-than-expected results in their first earnings season since the collapse of Silicon Valley Bank and Signature Bank last month. JPMorgan Chase reported record revenue that beat analyst expectations, with the stock rising more than 5% in the premarket. Wells Fargo shares advanced more than 3% in premarket trading after reporting growing profits. PNC Financial Services Group
shares climbed 1.5% after beating earnings expectations.

Meanwhile, there are signs that inflationary pressures may be easing. The March producer price index, a measure of prices paid by companies, declined 0.5% from the prior month, even as economists polled by Dow Jones expected prices to stay the same. Excluding food and energy, the index shed 0.1% from the prior month, while economists estimated a 0.2% month-to-month increase.

The PPI, which is considered a leading indicator of consumer inflation, bolstered a trend of easing inflation seen in the March consumer price index report released Wednesday. Consumer prices grew 5% on an annual basis, which was the smallest year-over-year increase in nearly two years.

Cryptocurrencies built on their post-Shanghai/Shapella gains Friday as investors put uncertainty about potentially negative aftereffects of Ethereum’s latest tech upgrade behind them.

Ether rose another 5% Friday morning to $2,113.73, bringing its two-day gain to nearly 12%, according to Coin Metrics. It’s on pace to end the week up 14%.

The pan-European Stoxx 600 index was up 0.2% at the start of the session, with most sectors trading in positive territory. Household goods and auto stocks led minor gains, both up 0.6%, while insurance stocks dropped 0.5% to lead losses.

Portfolio:

We enter the last trading session of the week holding positions in FSLY, YEXT, and ONON. Remember what we continue to remind our community since January; the pain trade is higher! Two days ago, you would think the markets were in full collapse mode if you put CNBC on the bearish calls were non-stop. Yesterday, pain for perma bears who refuse to follow the flow and technicals charts. Should we dare cross 4250 on the s&p and hold it, it's lights out for the bears. Unless we break and hold 3890, we just can't see it. We will gladly flip the narrative, but 3890 need to break and hold. Q's coiled up yesterday, HYG trading on highs yesterday, ton of index buying and we have vortex price action.

We are positioned well but may look to further position ourselves for the start of next week. Although it's Friday and we typically dislike adding new trade setups on Friday's, price might be too good to pass up. Queue remains ignited and we love to see it. Be ready and lets have a great session.