May 23, 2023

Markets:

Stock futures fell Tuesday after a key debt ceiling meeting between President Joe Biden and House Speaker Kevin McCarthy.

McCarthy and Biden met at the White House Monday evening, in a discussion that the House speaker described as “productive” and “professional.” The latest hourlong talk – occurring just days before the earliest date that the U.S. could default – seemed to echo a more positive tone.

Investors have been closely eyeing debt-limit negotiations in Washington, hoping for more certainty as the so-called X-date of June 1 draws closer.

The meeting follows a mixed session for Wall Street as investors followed the latest updates out of resumed debt ceiling negotiations. The Dow lost about 0.4%, while the S&P 500 finished little changed. The Nasdaq Composite advanced 0.5%. The tech-heavy index touched its highest intraday level and highest close since August.

On the economic front, investors will follow data on the manufacturing and services sectors as well as new home sales.

Portfolio:

Monster start to the week yesterday and we continue to enjoy an outstanding month / year. We enter today's session holding positions in ARRY, RIOT, NU, ASX, and INDI. Both had massive triggers with massive price / option volume beginning to surge. Now we look for the momentum to continue and carry these two to the finish line for us. Queue is igniting with force and we expect another opportunity or two to trigger. We do want to remain a bit cautious here as we will not push until we see the 4200 hold and this debt ceiling agreement settled. We do think we challenge 4350 on the S&P soon enough and then we have ourselves the real pain trade of 2023. The real opportunity in this market has not even started yet! I truly hope people see the technical picture that can be painted should this materialize. We patiently wait. Let's have a great session.