June 7, 2022

Markets:

Stock futures fell Tuesday after Target issued a warning about its current quarter’s profits, stoking fears of a potential recession.

Target shares fell 9% after the retailer announced plans to work down excess inventory. The company said it will implement additional markdowns to products and cancel some orders. Target also lowered its operating margins guidance for the quarter. Walmart shares followed Target lower, sliding 4.3%.

The indexes on Monday gave back most of their gains from earlier in the day as the 10-year Treasury yield spiked up to 3% and hit its highest level in nearly a month.

In economic data, May’s consumer price index reading is the big one investors are focused on, which is due out Friday. If the reading is cooler than April’s numbers, as expected, some could interpret it as a sign that inflation has peaked.

Portfolio:

We enter the new trading session holding positions in CVE, GOGL, DKNG, GLNG, and ITRM.  Markets are once again swinging on Targets margin warning.  Patience with the swings and do not chase day to day moves.  Many are positioning themselves ahead of Fridays Price index reading.  But we feel so much is already priced in and we continue to see technicals now respected.  This market is setting up for a monster move soon enough.

Be ready today and stay patient.  Let's have a great session.