December 21, 2021

Markets:

U.S. stock futures pointed to a higher open Tuesday morning, positioning markets to recoup some losses after a sell-off yesterday ignited by renewed investor fears that swelling Omicron case numbers could derail economic recovery and worsen inflationary pressures.

The moves come following news that President Biden is expected to unveil steps to combat Omicron that include buying 500 million at-home tests that will be available for Americans to purchase and the deployment of military personnel to help hospitals.

With virus fears triggering more restrictions and cancellations, concerns around Omicron’s spread weigh on traders still reeling from the Federal Reserve’s hawkish shift last week to more quickly withdraw monetary support and boost forecasts for rate hikes next year.

Even with a holiday-shortened week of trading, investors are tuning into a packed economic release schedule. The Conference Board is set to release its latest consumer confidence index on Wednesday, expected to show an only modest uptick for the month of December.

Portfolio:

We enter the new trading session holding positions in AHI, AEHR, MTTR, PSFE, F, and continue to hold itrm.  Well positioned for today’s rally but we need to see a follow through.  That is the key and what we will be watching closely.  This market is poised for ridiculous opportunity based on the price action over the last 3 weeks.  Be ready today and be ready to act.  Let's have a great session.