January 11, 2022

Markets:

U.S. stocks were little changed early Tuesday after a late rally in the previous session helped the tech-heavy Nasdaq Composite snap a four-day losing streak.

Bond yields were mixed Tuesday, with shorter dated Treasurys up but rates rising for those at the longer end of the curve. The benchmark 10-year Treasury note dipped to 1.773% after hitting 1.8% on Tuesday.

In regular trading on Monday, the Nasdaq turned slightly green into the close after a day of continued declines from the previous week’s sell-off, sparked by a rise in bond yields and worries about upcoming actions by the Federal Reserve. It closed 0.05% higher and erased a 2.7% loss. Meanwhile, the Dow after being down more than 500 points ultimately lost 162 points, or 0.4%, while the S&P 500 slid 0.1%.

On the Federal Reserve front, Chair Jerome Powell will testify before a Senate committee on Tuesday as part of his re-confirmation process. Investors will be looking for insight into the Fed’s current views on inflation and the speed of policy tightening.

Earnings season will be in full swing by the end of this week with the big banks set to report starting Friday. Grocery chain Albertson’s reported results that beat expectations on the top and bottom lines on Tuesday morning.

Portfolio:

We enter the new trading session holding positions in OPEN, ZION, and continue to hold itrm.  Nice session for us yesterday and we expect a potential busy week as the queue is once again igniting with opportunity.  We are trying to be cautious as the market works through events but we cannot stress enough the importance of earnings season set to begin this Friday and what this will provide the market for the coming months.  This event should be welcomed by all.  Several high growth stocks have come back down to their pre-COVID multiples.  The e-commerce, payments, software companies were hit first, so will they also bottom out before the indices?  Earnings season can be explosive and provide ridiculous opportunity.  

Let's have a great session and please be ready for further updates as well as a potential new trade alert.