March 30, 2022

Markets:

U.S. equities futures moved lower Wednesday after stocks extended their rally in the previous session, even as fears of an inverted yield curve sparked recession concerns and investors continued watching developments play out in Ukraine.

Russia said late Tuesday it would reduce its military presence in some parts of Ukraine, but several countries — including the U.S. and U.K. — remain skeptical over Moscow’s pledge. Meanwhile, Russian attacks on Ukraine continued Wednesday.

Crude prices, which have soared since the war began, climbed more than 2% to $106.57 per barrel on Wednesday. Germany warned of potential rationing of natural gas due to disputes with Russia.

All eyes were on the bond market Tuesday as the U.S. 5-year and 30-year Treasury yields inverted Monday for the first time since 2016. Historically, this inversion has been a sign of a coming recession, though it hasn’t been a good indicator of when the recession would come. Still, investors largely shrugged off the event.

On Tuesday, the main yield spread traders watch, that between the 2-year and the 10-year rate, came close to inverting but stayed positive. On Wednesday, the spread climbed back to about 7 basis points.

Portfolio:

We enter the new session holding positions in FUBO, LCID, NU, and ITRM. Queue continues to ignite but we are trying to be a bit patient as we expect swings over the next two sessions with quarter ending rebalncing taking place.  Be ready today for new updates and a potential new trade alert.  Continue to be patient with your trading here.  Let's have a great session.