September 7, 2023

Markets:

S&P 500 futures fell Thursday as renewed concern swirled on Wall Street over the course of the Federal Reserve’s interest rate policy, and whether policymakers will enact another hike this year.

Apple shares dropped nearly 3% before the bell on a Bloomberg News report that China’s looking to broaden a ban on the use of iPhones in state-owned companies and agencies.

A series of reports Thursday morning, including fewer-than-expected jobless claims, further prompted reemerging concerns that the still strong labor market may make the Federal Reserve think twice about relaxing its tight monetary policy. Jobless claims came in at 216,000, versus the 230,000 expected by Dow Jones, while labor costs rose more than anticipated.

Major U.S. stock benchmarks are coming off a losing session as higher Treasury yields pressured tech stocks and heightened investor worry that the Federal Reserve will use recent stronger-than-expected economic data to justify additional hikes.

While 93% of interest rate traders foresee no change at September’s Federal Open Market Committee meeting, expectations of an additional interest rate hike at the November meeting rose above 40%, according to the CME FedWatch tool.

Portfolio:

And we are back on the interest rate narrative! We love the opportunity this will generate and what should develop from this. VIX under 15, we have some VOL sellers now showing up, now we look for the aftershocks and opportunity to kick in over the next week. Still we have trend day risks, but friendly reminder to not chase the day to day move but rather the overall trend / development. Both sides of the trade live for us. We've enjoyed a monster period the last 10 days or so but this is just starting. Buckle up!

We enter today's session holding set-ups in VST, TSLL, AEHR, and IONQ. No changes needed for the open.

Be ready today and let's have a great session!