October 23, 2023

Markets:

New trading week, monster opportunities ahead! Let’s get after it.

Stock futures fell Monday as Treasury yields rose and traders looked ahead to the release of corporate earnings from tech industry giants.

The benchmark 10-year Treasury note yield briefly climbed back above the key 5% level. It was last trading just below that mark.

Interest rates have soared in recent weeks, with the 10-year’s break above 5% on Thursday marking the first such occurrence for the benchmark since July of 2007. Comments from Federal Reserve chair Jerome Powell that monetary policy could tighten further seemingly stoked investor concern and underpinned the rise in Treasury yields.

Earnings season ramps up this week, with a slew of big tech titans set to report. Investors will anticipate results from Alphabet, Amazon, Meta and Microsoft to provide key information for the stock market.

On Friday, the S&P 500 closed below its 200-day moving average for the first time March 17.

The index had tested and bounced off the 200-day level earlier this month, but the rally proved to be weak and the bounce reversed.

Portfolio:

We enter the new trading week holding set-ups in RPD, NTNX, PATH, and AX. Monster week ahead for technicals – especially today, as well as earning reports to come. Such an important week. This morning we also received news of further M&A activity with CVX buying HES. The M&A market remains hot and when the Fed confirms end of hiking this really can go crazy with activity.

As we mentioned on Friday into the close, it’s all about how we trade today and where we close today. Technically, monster day ahead to set new trend lines and see who has the upper hand now; Bulls or Bears. Stay patient and let’s have a monster week. The period we wanted is set to begin.