August 4, 2022

Markets:

Stock futures were largely flat Thursday morning as investors wait for new economic data on the labor market that will give further information about a potential U.S. recession.

Wall Street was coming off a strong session. On Wednesday, the Dow advanced more than 400 points, while the S&P 500 hit its highest level since June. The tech-heavy Nasdaq Composite jumped about 2.5%.

Investors got the green light to jump back into beaten up tech names after a surprise rebound in July services PMI and comments from St. Louis Federal Reserve President James Bullard. Bullard said he does not think the U.S. is in a recession, citing job gains and low unemployment.

Investors will get another batch of earnings on Thursday. Virgin Galactic, AMC Entertainment and Beyond Meat are scheduled to report after the bell.

In economic data, investors are looking forward to weekly jobless claims in the morning and the June nonfarm payrolls report due Friday. Federal Reserve Bank of Cleveland President Loretta Mester speaks at the Economic Club of Pittsburgh.

Shares of Tesla ticked up more than 1% in premarket trading Thursday ahead of a potential approval on a 3-for-1 stock split. The company officially proposed the stock split in a proxy statement filed in June. There will be a vote on the split at Tesla’s annual shareholder meeting today.

Portfolio:

We enter the new trading session holding only positions in WEN, DOCN, SNAP, MRO, and holding itrm. Nice session for us yesterday and we look to continue the momentum today. We want to begin positioning ourselves further for the moves we see developing over the next few weeks. We remain balanced here, but specific sectors are really heating up and we may want further exposure to that type of price activity and price momentum. These trade set-ups are coming much quicker now, it's so good to see and we fully expect this to carry through mid-terms. Make sure to silence the "noise". Trade the trends and forget narratives trying to be pushed on this market. Let's have a great session.