October 2, 2023

Markets:

Stock futures ticked down Monday after U.S. legislators were able to come to a temporary agreement that staved off a government shutdown.

The Senate passed a continuing resolution with just hours to spare before a midnight deadline Saturday, which was then signed by President Joe Biden into law. The bill keeps the government open for 45 more days, an extended period that lawmakers can use to finalize funding legislation.

Futures gains were limited as investors feared lawmakers were headed for another shutdown fight eventually as Saturday’s agreement did nothing about brewing disagreements on overall government spending levels, the border and Ukraine.

The looming threat of a government shutdown weighed on investors last week, which also marked the end of the trading month and quarter. Investors feared a shutdown could further weigh on a U.S. economy already seeing slowing growth under the weight of the highest interest rates in 15 years.

Investors will watch for economic data due Monday on purchasing and construction spending. Later in the week, attention will turn to a string of reports offering insight into the health of the labor market, including Friday’s all important monthly payrolls data.

Portfolio:

We enter the new month and trading week holding setups in IONQ, FSLY, GEO, CLF, and ATEN.  September was an exceptional month for us, and Q3 as a whole was a strong addition to what has already been a fantastic 2023 for our trading endeavors. This is particularly noteworthy when considering the fluctuations in the overall market.

Q4 is a favored quarter for us, closely followed by Q1. There are numerous factors in Q4 that create exceptional trading opportunities. We've already begun discussing these factors over the past few weeks, and we'll delve even deeper in the weeks to come.  Technically, this market continues to withstand and base, leading us to believe the pain trade is still in tact…which is higher!  Watching this closely, ready to swing as needed.  Be on alert and let's start Q4 in a monster way!