October 4, 2023

Markets:

Stock futures rose slightly Wednesday as Treasury yields pulled back from multiyear highs following the release of much weaker-than-expected jobs data.

An ADP report released Wednesday showed that private payroll data from September came in lower than expected, indicating that labor market growth may be slowing. Job growth came in at just 89,000 for the month, down from an upwardly revised180,000 in August sharply lower than the 160,000 forecasted by economists polled by Dow Jones.

The data comes on the back of a losing session on Wall Street after job openings data indicated the labor market is still strong and bond yields marched higher. The Dow lost 1.3%, notching its worst session since March. The S&P 500 tumbled 1.4% and at one point hit its lowest level since June. The Nasdaq Composite ended 1.9% lower.

Meanwhile, the 10-year and 30-year Treasury yields both hit their highest levels since 2007 in the session. The average rate on the closely followed 30-year fixed mortgage approached 8%. Yields were little changed Wednesday.

Positions:

Yesterday's session was quite eventful with market volatility. Today, we're closely monitoring the 4289 level for potential upward movements.  Currently, our portfolio includes TH and TQQQ. Our queue is showing signs of ignition this morning, primarily due to extreme oversold conditions. Our strategy is to exercise patience and closely observe early price actions, as this seems to be setting the stage for a significant move. It's important to remember not to chase day-to-day fluctuations; this market has been unforgiving to such impulsive traders over the past 15 months. Success here rewards those who exercise patience and stick to a well-thought-out plan. Not every asset will follow a linear path up or down; understanding the swings in this market is crucial. However, the rewards have been substantial this year, and we should stay focused on identifying opportunities. The excitement surrounding the potential developments in this market should motivate everyone.