September 15, 2023

Markets:

Stock futures ticked up on Friday after markets rallied on the back of the latest IPO debut.

Adobe fell 1.6% in extended trading even after posting better-than-expected quarterly results. Lennar edged down 0.6% despite a top-and-bottom line beat. The newly debuted Arm Holdings traded near flat in premarket trading.

Elsewhere, a United Auto Workers strike shut down three key plants impacting operations for GM in Wentzville, Missouri; Ford’s Ranger midsize pickup and Bronco SUV plant in Wayne, Michigan, and Stellantis’ Jepp operation in Toledo, Ohio.

Ford shares fell 1.7% in premarket trading, GM was off 1.5% while Stellantis rose 0.7%.

Stocks are coming off a winning session as Wall Street applauded a possible end to an extended technology IPO drought and assessed a fresh batch of economic data. The Dow jumped 331.58 points, or 0.96%, rising for the first time in three sessions and notching its best daily performance in over a month. The S&P 500
added 0.84%, while the Nasdaq Composite climbed 0.81%.

Investors are looking ahead to another packed day for economic data. This includes a preliminary September consumer sentiment reading, as well as import and export prices for August. Industrial and manufacturing production data for August are also due. The Empire State Manufacturing Survey, tabulated by the New York Fed, rose to 1.9, an increase of 21 points from July and better than the Dow Jones consensus for -10. The gauge measures the difference between companies reporting expansion against contraction, so the reading indicates a barely growing sector though better than a month ago.

Portfolio:

Great week and we enter the last trading session of this wonderful week holding setups in WW, ATEN, UPST, and RIG. Queue continues to ignite but we do want to be a bit patient as head into the Fed rate decision next week. But, as stated yesterday, so many names are coiling! The potential for absolute carnage for shorts is right there. We spoke about the runway this market would have for the past several months once we cleared and held 4570ish area on the S&P. This is our next line. Next week has the potential but we will allow the market to price accordingly and allow the market to develop and confirm the trend.

Words of caution for all; today is quadrupole witching day. Happens once per quarter. Be patient, expect swings today. It's normal on witching day. Be ready come Monday.