January 7, 2022

Markets:

Hiring disappointed again in December but the unemployment slid rate to a new pandemic low of 3.9%, reflecting an ongoing labor shortage and underscoring expectations that the Federal Reserve will lift interest rates in March.

Employers added just 199,000 jobs last month, well below the 424,000 increase economists projected and even weaker than the upwardly revised 249,000 increase in November. 

Heading into this print, U.S. stocks have come under pressure over the past couple sessions as investors reassessed the next likely moves by the Federal Reserve. With policymakers closely watching for signs that the economy has reached maximum employment, the jobs report could provide additional fodder for the Fed to double down on its more hawkish tilt.

The Fed's December meeting minutes released earlier this week suggested some officials were inclined to speed their asset-purchase tapering and move up the timing of an initial interest rate hike from current near-zero levels. And in a surprise development to many market participants, some officials also suggested they were contemplating the start of reducing the nearly $9 trillion in assets on the central bank's balance sheet. Such a move would quickly shift the markets away from the accommodative monetary policy backdrop that helped underpin risk assets during the pandemic. 

Portfolio:

We enter the new trading session holding positions in LCID, ASB, and continue to hold ITRM.  We will be looking to add today to position ourselves for next few weeks.  Earnings season is upon us beginning next week.  This will separate oversold names from the rightfully sold names.  Fundamentals right now do not matter.  Algo's continue to sell high growth names this week. Today we will focus on QQQ and SPY and if it can hold yesterday's low.  Queue is filling with new opportunities, be ready.