February 16, 2022

Markets:

Stock futures dipped Wednesday morning after jumping a day earlier when an apparent deescalation of Russian advances in Ukraine helped boost U.S. equities. Investors awaited a fresh print on the state of consumer spending in the Commerce Department's latest retail sales report later in the morning.

Crude oil prices and energy stocks rose in early trading to recover some of Tuesday's losses, as the latest geopolitical headlines appeared to reduce the threat of immediate military action and potential disruption of Russian energy supplies. West Texas intermediate crude oil futures rose above $93 per barrel, hovering near a seven-year high.

The latest move to the upside across the broader stock indexes represented a momentary relief rally after a three-day losing streak, but only modestly unwound year-to-date losses as concerns over inflation and the Federal Reserve's next move lingered. And with inflation running at multi-decade highs, uncertainty around the trajectory of domestic economic growth has remained an ongoing point of concern for investors. Wholesale prices surged by 9.7% in January over last year, representing a near-record jump.

The yield on the benchmark 10-year Treasury topped 2% as a risk-on tone returned to the market. Yields were little changed Wednesday, with the benchmark note slightly above 2%.

As inflation runs hot, Wall Street is looking ahead to the minutes from the Federal Reserve’s January meeting, which will be released Wednesday at 2 p.m. ET.

Portfolio:

We enter the new trading session holding positions in VTRS, SLV, PBR, NOV, and continue to hold itrm awaiting its test release. It's monthly expiration week so the moves to both side of the trade is expected.  Stay the course as we are, stay patient, and trade the plan.  Today we have the Fed at 2pm as well.  Expect a rollercoaster type of session.  This is ok.  Allow the market to work through this and continue to build for the longer trend trade cycle we see developing.  Be ready today and let's continue to have strong sessions.