June 17, 2022

Markets:

Stock futures rose Friday as Wall Street attempted to find its footing after a brutal week of selling.

The moves come as investors are increasingly worried about a potential economic slowdown. Several key pieces of economic data fell short of forecasts this week, ranging from May retail sales to housing starts, and the Federal Reserve raised its benchmark interest rate by the most since 1994.

Market volatility could be heightened Friday thanks to “quadruple witching.” This refers to the simultaneous expiration of stock index futures, single-stock futures, stock options and stock index options. This event happens once a quarter and typically leads to a surge in trading volume, making for choppy trading action as traders close out positions.

The Dow, meanwhile, fell below 30,000 for the first time since January 2021 on Thursday. The 30-stock average is down 4.7% for the week, on track for its 11th negative week in 12.

The tech-heavy Nasdaq Composite has been hit even harder, and is down 6.1% for the week.

Friday is a relatively light day for economic data, with industrial production data for May due out before the opening bell.

Portfolio:

We enter the new trading session holding positions in DISH, ALLY, and holding itrm. Great session for us yesterday.  We would not be surprised at all to see a weak close today, followed by a potential weak Monday and then a ramp to end the quarter. Proceeding with caution but we are setting up for a nice range of trading.

Yesterday we noticed huge index option trading. The fear was finally real yesterday with massive put buying taking place. From retail to index we finally see the switch. This should be last phase and then we have massive opportunity in front of us. Stay patient and allow the trades to materialize. Let's have a great session.