December 2, 2021

Markets:

Stock futures were mixed Thursday morning after dropping a day earlier, with investors assessing the latest headlines on the Omicron variant and mulling lingering concerns around inflation.

The latest updates on the virus front have come on top of traders' ongoing concerns over rising prices. Monetary policymakers have also underscored these lingering inflationary trends, stoking concerns that the Federal Reserve may soon pivot away from its accommodative policies that had helped support markets throughout the pandemic. In the Federal Reserve's December Beige Book, or collection of anecdotes about economic conditions throughout the Fed districts, the central bank said it observed that, "Prices rose at a moderate to robust pace, with price hikes widespread across sectors of the economy." 

Federal Reserve Chair Jerome Powell also told lawmakers this week that he thought it would be appropriate for monetary policymakers to consider ending their asset-purchase tapering process sooner than previously telegraphed, or potentially before the middle of next year. That has in turn raised the specter that interest rate hikes could also come more quickly than previously anticipated after the conclusion of the Fed's tapering process. 

According to a number of strategists, inflation — as well as policymakers' responses to inflation — will ultimately be one of the driving forces for the market going forward. 

Portfolio:

We enter today's session holding positions in EDR, PSTG, VALE, F, and continue to hold ITRM for it's pending release of drug update.  Nice day for us yesterday!  Last two weeks we've experienced wild swings.  We are trying to be a bit patient here while the market works through these narratives.  Our community knows we love market volatility, it's what feeds our indicators and service.  We cannot stress this enough, what we are experiencing over the last two weeks will provide a path way for this market to accelerate with outstanding trading opportunities; on both sides of the trade. We understand the daily swings can be a bit much, but it truly is paving the way for future trades with overall technicals.  Please do not get caught up with day to day news narratives.

Right now, we continue to follow our indicators and navigate this market.  There is a great deal of divergence happening within this market.  Soon, this divergence will meet and we will be provided an absolute stellar period to trade.  The best period, to us, is still to come for traders.  Soon! Let's have a great session!