September 20, 2022

Markets:

Stock futures slipped Tuesday as Wall Street looked to build on a modest rebound ahead of another rate hike from the Federal Reserve.

The Federal Open Markets Committee kicks off its September meeting on Tuesday, where central bankers are expected to announce a 0.75 percentage point rate hike on Wednesday. Stocks have tumbled in recent weeks as comments from Fed Chair Jerome Powell and an unexpectedly hot August consumer price index report caused traders to prepare for even higher rates until inflation cools.

During a choppy trading session on Monday, stocks rose in the afternoon to snap a two-day losing streak and claw back some of their recent losses. The Dow rose 197 points, or about 0.6%. The S&P 500 and Nasdaq Composite gained roughly 0.7% and 0.8%, respectively.

However, after the market closed on Monday, Ford announced that supply chain issues would cost the automaker an extra $1 billion in the third quarter. Shares fell nearly 5% in premarket trading.

On the economic front, investors will get a fresh look at the housing market on Tuesday morning with the August reports for housing starts and building permits.

The yield on the 2-year U.S. Treasury note notched a fresh 15-year high on Tuesday as traders looked ahead to a decision out of the Federal Reserve’s rate-hike meeting.

The yield on the policy-sensitive 2-year Treasury gained about 3 basis points, reaching 3.977% — a level it had not hit since late 2007.

Portfolio:

We enter todays session holding positions in AG, AEHR, PINS, STEM, and COMM.  Absolute chop fest yesterday and anyone trading weeklies just crushed.  This market will continue to chop until the Fed's release.  The Fed begins their meeting today and once we receive word on the rate hike and their statement this market should have everything priced in and then we proceed short term. Mid-terms, end of year rotation, 4th quarter earnings, etc..  The pathway could be absolutely explosive.  On the other side, we break lower then we want to see a break below 3800 on the s&p and we get absolutely explosive to the downside.  Expect further chop today, stay patient.  Let's have a great session.