May 12, 2022

Markets:

Stock futures traded lower Thursday morning as a sell-off continues on Wall Street that’s pushed the S&P 500 to the lowest in more than a year and to the cusp of a bear market.

The latest inflation data on Wednesday showed consumer prices in April jumped 8.3%, higher than expected and still running close to a 40-year high of 8.5%. The report caused investors to continue to sell risky assets like tech stocks and bitcoin.

In regular trading Wednesday, the Dow fell 326 points, or 1.02%. The S&P 500 slipped 1.65% and the Nasdaq Composite dropped 3.18%. The S&P 500 is now more than 18% off its high and down more than 17% since the start of the year. The Nasdaq Composite is already nearly 30% off its high.

Bitcoin plunged below $27,000 overnight Thursday from inflation fears and the collapse of controversial stablecoin TerraUSD. Tech companies with bitcoin holdings declined in the premarket. Tesla lost 2%, while MicroStrategy fell 10%.

Disney shares fell more than 4% in premarket trading after reporting mixed earnings results. The media giant reported higher-than-expected streaming subscriber growth, but warned about the Covid impact on parks in Asia.

Portfolio:

We enter todays session holding positions in PENN, X, ATI, and itrm.  We will be looking to add today.  Queue continues to ignite and we love the set-ups emerging.  Be ready today and as we continue to remind everyone; the next several months have the greatest potential for returns with trend lines being tested.  Time has come.  Let's have a great session.