September 1, 2022

Markets:

U.S. stock futures fell Thursday, the first day of September, as traders continued to fret over the potential for higher Federal Reserve rates.

Dow Jones Industrial Average futures fell by 143 points, or 0.4%. S&P 500 and Nasdaq 100 futures declined 0.4% and 0.7%, respectively.

The moves came as the 2-year U.S. Treasury yield rose to 3.516%, the highest level since November 2007, at one point Thursday. The two-year Treasury yield jumped 4 basis points to hit an intraday high of 3.516% Thursday, reaching its highest level since Nov. 15, 2007. The short-term rate, most sensitive to the Federal Reserve’s monetary policy, jumped more than 0.5% in August and exceeded the yield on the benchmark 10-year note.

Nvidia shares also contributed to the losses, falling more than 5% in premarket trading after the chipmaker said the U.S. government is restricting some sales in China.

European markets made a negative start to the new trading month, having closed out August lower as traders grapple with fears of higher interest rates and a looming economic downturn.

Portfolio:

We enter the new trading month holding positions in AEHR, FIGS, ET, and CNHI. It'll be interesting to see trading volume as we head into the afternoon today as many traders will look to get a head start into a long holiday weekend. It's expected to see light volume tomorrow, historically it's always been the trend. Come Tuesday, we should begin to see the full rush of volume and historically it begins seasonal trends and begins to set the pathway to end of year opportunities. This year we also have mid-terms as we head into end of year, massive opportunity will be generated with this event. Historically, one of the best trading trends. This is exactly what excites us! We are trying to remain patient as we look forward to next week and the months to come. So many positions (I'm sure many of you are seeing this as well) are setting up with monster gaps with air pockets (below and higher). Jobs report tomorrow will be key for these trend line to materialize further as well prior to next week. But take a look at SHOP, MSTR, and ETSY to name a few. Technical monsters brewing (both ways of the trade as well). Things that are getting us excited. Stay patient here. Let's have a great session.