May 20, 2022

Markets:

U.S. stock index futures pointed to a bounce for Wall Street on Friday, with sentiment getting a lift from a cut in one of China’s key lending rates, but investors are still facing yet another weekly loss.

On Thursday, the Dow industrials and S&P 500 booked their lowest closes since March 2021, according to Dow Jones Market Data. The Dow DJIA, -0.75% fell 236.94 points, or 0.8%, ending at 31,253.13, after a 300 point gain at one point. The S&P 500 SPX, -0.58%  fell 0.6% to 3,900.79, and the Nasdaq Composite  COMP, -0.26% slipped 0.3% to 11,388.50.

Wednesday’s dramatic selloff marked the worst day for the Dow and S&P 500 since June 2020.

The People’s Bank of China on Friday cut in its rate on five-year loans, aimed at shoring up weak housing sales by cutting mortgage costs. The country has been battling COVID outbreaks, with lockdowns in industrial hubs such as Shanghai blamed for weak factory and consumer activity data in April.

The S&P 500 finished a step closer to bear-market territory on Thursday as the Russia-Ukraine war, a China slowdown, high inflation and rising interest rates have sparked concerns over corporate profits and economic growth.

The U.S. data calendar is empty for Friday, but next week will bring another round of inflation data, personal consumption expenditure prices excluding food and energy.

Portfolio:

Today is Monthly OPEX.  Expect wild swings and do not be fooled by early morning price activity when dealing with MOPEX.  We see a ton of rising wedges to start the session; this could get nasty into the afternoon / close.  It's Friday, be patient, allow price to materalize and we may look to add a new position to further position ourselves for next week.  Next week, with a fresh new round of data to be released, has the makings for monster moves to both sides!  We are well positioned with BBAI, PENN, AVYA, and holding itrm.  Let's end the week strong and remember to be patient with your trading day – expect a roller coaster day with price activity.