January 28, 2022

Markets:

Stock futures dipped Friday morning as investors took in earnings results from some major tech companies and another hot print on inflation at the end of another volatile week. 

Contracts on the S&P 500 fell. Dow futures also declined, even as component stock Apple (AAPL) jumped after the iPhone-maker reported record quarterly sales and better-than-expected profits despite supply chain challenges. Meanwhile, Robinhood (HOOD) shares sank after the trading platform missed on quarterly revenue, posted a larger-than-expected quarterly decline in users, and offered disappointing guidance. 

Fresh economic data was also in focus on Friday. The latest inflation data showed another multi-decade high rate of price increases, as the Personal Consumption Expenditures (PCE) index posted a 5.8% year-over-year rise in December, or the biggest jump since 1982. Core PCE, which excludes more volatile food and energy prices, rose at a 4.9% annual rate, representing the largest leap since 1983. 

The S&P 500 was on track to post a weekly loss of about 1.3%, based on Thursday's closing prices. New reports showing a better-than-expected rise in fourth-quarter U.S. GDP and improvement in weekly jobless claims did little to help turn stocks around on Thursday. The Dow and Nasdaq have each also fallen over the course of the past week, with volatility rising as traders considered the implications of the Federal Reserve's more hawkish monetary policy tilt for markets. 

Portfolio:

We enter the last day of trading for the week holding positions in MRO, DDD. BITO, and itrm.  We feel we are well positioned for the next two weeks while also looking to pinpoint quick trade opportunities.  

The overnight futures as well as premarket have seen an incredible range of trade thus far.  But, readings are so oversold, would not be surprised to see a "rip your face" type of rally that holds very soon.  So many names look ready to explode.  Just patiently waiting and the opportunity will be one that can make an entire year!  February is really setting up for a special month based on trend lines forming.  Let's have a great session today!