February 23, 2022

Markets:

U.S. stock index futures were slightly higher in early trade Wednesday after the S&P 500 index closed in correction territory Tuesday, down more than 10% from its record high on Jan. 3, in the wake of Russian President Vladimir Putin’s decision to order troops to breakaway regions of Ukraine, escalating tensions and raising fears of a full-scale invasion.

Global stocks broke a four-day fall as demand for safe haven assets waned on Wednesday, with investors waiting to see Putin’s next move.

President Joe Biden on Tuesday said the U.S. would sanction two Russian banks as well as the country’s sovereign debt, as he blamed Moscow for what he called the beginning of an invasion of Ukraine. Earlier on Monday Biden had issued an executive order barring new investment, trade and financing by U.S. persons in the breakaway regions where Russia sent troops.

Meanwhile, officials from the European Union referred to Putin’s latest moves, including the recognition of the independence of the Russian separatist Donetsk and Luhansk regions’ independence, as “a blatant violation of international law.” And Germany took steps to halt certification of the Nord Stream 2 pipeline that’s set to carry natural gas from Russia to Western Europe.

In Asia, the Hang Seng HSI, +0.60% in Hong Kong gained 0.6% and China’s Shanghai Composite Index SHCOMP, +0.93% rose 0.9%. Japanese markets were closed for a holiday.

Portfolio:

We enter the new trading session holding positions in VTRS, SLV, NOV, and ITRM.  We understand the stop triggered for NU yesterday but cfor those who held, NU is ripping this morning in premarket.  Real shame for us, thought we caught the low but obviously wrong on entry.  We might revisit NU but we need to move forward from that trade for now.  We still enjoyed a positive day! 

 

Markets are experiencing wild swings but we truly do believe this is just setting up the market for an even greater move and trend line to trade with enormous trading opportunity.  Everything is being thrown at this market right now; be patient as it continues to digest it all.  We will continue to pinpoint opportunity but want to remind everyone to not chase the day to day moves.  We will continue to trade sectors and technicals.  Be ready today and let's have a great session.