October 10, 2023

Markets:

U.S. stock futures were slightly higher Tuesday, boosted by a drop in Treasury yields as Wall Street assessed the geopolitical risks of a protracted conflict from the Israel-Hamas war.

 

The benchmark 10-year Treasury yield was down about 9 basis points at 4.694%, as investors turned to the traditional safe haven amid the conflict. These movements reflect the bond market’s first reaction to the Israel-Hamas conflict as it was closed on Columbus Day.

 

Oil prices also eased after rallying in the previous session. West Texas Intermediate and Brent futures were both down around 0.6%.

 

The decline in yields gave stock futures a lift, as Wall Street remains concerned over the recent quick rise in interest rates. Investors may also be looking past the geopolitical risks caused by the conflict, helped by Friday’s stronger-than-expected September payrolls report and optimism ahead of a slew of third-quarter earnings this week.

 

During Monday’s trading session, stocks were initially lower—with the Nasdaq falling more than 1% during its session lows—before turning positive across the board. The 30-stock Dow added 197 points, or 0.6%, while the Nasdaq Composite gained 0.4%. The S&P 500 added 0.6%.

 

Portfolio:

We enter the new trading session holding set-ups in UNG, PATH, TH, and AX. Yesterday we experienced a bounce and turn green as we thought could happen and mentioned in pre-market yesterday. Today we are looking for follow through and a key number technically to hold on the S&P. Queue continues to ignite and we want to be a bit more aggressive but trying to be patient and allow price to materialize a bit more. With earnings season set to begin at the end of the week, we look forward to the monster opportunities that will develop in the coming weeks. Cannot express enough the opportunity in front of us. Be ready folks.