May 16, 2022

Markets:

Stock futures fell on Monday as the market attempted to rebound from a relentless sell-off that’s punished tech stocks and pushed the S&P 500 to the brink of a bear market.

Monday’s losses come after a comeback attempt on Friday, where the Dow rose 466.36 points, while the S&P 500 climbed 2.39%. The Nasdaq Composite jumped 3.82% and posted its strongest one-day gain since November 2020.

The S&P 500 sits 16% off its record high, while the Nasdaq Composite is down more than 27% as investors hit growth stocks trading with lofty valuations the hardest as interest rates spiked.

Retail earnings season kicks off this week with several big-box retailers set to report results for the first quarter, including Walmart, Target and Home Depot. Elsewhere, Deere is also on deck, along with a handful of technology companies.

Investors will also have their eye on retail sales data this week, which could give them insight into how retailers are managing inflation, which remains near 40-year highs.

Portfolio:

We enter the new trading week holding positions in ATI and holding itrm here. We will be looking to add today and this week. Queue continues to ignite with opportunity although the market continues to bounce both sides of the trade around. Remember, do not chase day to day moves. That is not the trend! Follow the trend lines and the price activity. We've navigated this well, but the real opportunity is just beginning to set off. Be ready and let's have a great trading week!