June 14, 2022

Markets:

U.S. stock futures rose Tuesday, as the market tried to claw back some of Monday’s steep declines that pushed the S&P 500 back into bear market territory. Traders also looked ahead to a key monetary policy announcement from the Federal Reserve later in the week.

Shares of Oracle jumped 12% in premarket trading after the software company reported an earnings beat boosted by a “major increase in demand” in its infrastructure cloud business.

The moves came after an intense sell-off Monday. The S&P 500 slumped 3.9% to its lowest level since March 2021, closing more than 21% below its January record. Monday’s close marked bear market for the S&P 500 since March 2020. During that last bear market, the S&P 500 lost 33.9% before recovering, according to data compiled by S&P Dow Jones Indices. The data also showed that bear markets on average last more than 18 months.

Traders now see a more than 90% chance of a 75-basis-point rate hike at this week’s Fed meeting, which concludes Wednesday, according to the CME Group’s FedWatch tool that measures pricing in the fed funds futures markets.

Wall Street is also expecting the latest reading on the May producer price index on Tuesday before the bell at 8:30 a.m.

Portfolio:

We enter the new trading session holding only two open set-ups; MTW short and holding itrm until trial results are released.. All eyes will be on the Fed tomorrow and until their release, expect wild swings within this market. Once this event passes and traders are able to digest it, you will then have the markets true price activity. Yesterday was so mechanical. Stay patient. No need to rush into any trades here. Allow this to materialize and then we jump all over the price activity. We will say however, For the first time in a long time, some serious sectors look outstanding for long term opportunities. Be on alert and be ready for further updates and a potential new trade alert. Let's have a great session.