April 25, 2022

Markets:

U.S. stock futures fell on Monday, pointing to a continuation of an April market sell-off that has pushed the Dow Jones Industrial Average lower for four-straight weeks.

Fear about a global economic slowdown loomed as Asian stock markets cratered Monday amid concerns about Covid case spikes in China. Oil prices declined and yields retreated on the fears.

Wall Street is also bracing for a stacked week of earnings, including reports from major technology companies like Amazon and Apple.

After a late March comeback, stocks returned to their losing ways in April. The Nasdaq Composite is down nearly 10% for the month while the S&P 500 and Dow are off by 5.7% and 2.5% respectively. The S&P 500 is back in correction territory, down 11% from its high. The Nasdaq is off by more than 20% from its record.

Investors are watching Twitter as well, which reportedly is re-examining Elon Musk’s takeover bid. The social media company is nearing a deal to sell itself to the billionaire investor, The New York Times reported, citing unnamed sources. Twitter shares were more than 4% higher in the premarket.

WTI Crude oil fell more than 5% back below $100 on fears of a global slowdown. The 10-year Treasury yield, which has undergone a rapid rise this year that has worried investors, dropped nearly 10 basis points to the 2.8% level (1 basis point equals 0.01%).

Portfolio:

We enter the new trading week holding only 3 positions; Shorts in AA and DKNG as well as holding itrm. We are patiently waiting to absolutely attack this market with opportunities that continue to develop. We breached so many support lines across multiple names we follow. It will be absolutely fascinating to watch early morning price activity and to see if buyers step in or short term punishment comes for these names. Cannot stress this enough; be ready, we are so close with this market. Let's have a great week and trading session. Stay patient and continue to stay nimble as we've been over the last few weeks.