April 4, 2022

Markets:

U.S. stock index futures were mostly flat Monday, as traders monitor the bond market’s warning signals about the economy.

Twitter shares surged more than 25% after SEC filings revealed Elon Musk purchased a more than 9% passive stake in the social media company. It comes less than a week after Musk polled his followers, questioning whether the social media giant follows free speech principles. Based on Twitter’s Friday closing price, the stake is worth $2.89 billion.

An often-cited recession signal was triggered Thursday evening when the 2-year and 10-year Treasury yields inverted for the first time since 2019. The 5-year note yield is also trading above its 30-year counterpart.

Investors are also monitoring the latest developments in Ukraine. German Chancellor Olaf Scholz said Sunday that Western nations will impose additional sanctions on Russia in the coming days.

On Wednesday the Federal Open Market Committee will publish the minutes from the central bank’s March meeting, giving investors a deeper understanding into how the Fed views market conditions.

Portfolio:

We enter today's session holding positions in LICY, NU, ZI, and itrm.  As expected, and we continued to state leading into last week, we expected a volatile week especially with the last few remaining days of the month.  It was not only month ending but quarter ending type of trading.  The swings of late with quarter ending sessions have been massive.  We now have that past us and we are able to focus on a new month as well as a new quarter.  One filled with opportunities.  We expect to add new set-ups this week so please be ready.  Let's have a great session and let's have a great quarter ahead!