September 21, 2022

Markets:

Stock futures rose slightly Wednesday as traders looked ahead to a potential interest rate hike announcement from the Federal Reserve later in the day.

The central bank on Wednesday is expected to deliver its third consecutive 0.75 percentage point rate hike to tame high inflation. A higher-than-expected consumer price index reading in August and hawkish comments on rate hikes from Fed leaders have weighed on stocks, with more pressure likely ahead as the central bank continues to fight inflation.

Investors will be monitoring the central bank’s longer-term projections and comments from Chairman Jerome Powell for insight into how much more interest rates can go up and how that could impact economic growth.

Treasury yields dipped Wednesday after reaching levels not seen in more than a decade. The 2-year rate, which touched its highest level since 2007 in the previous session, was last down about 2 basis points at 3.948%. The benchmark 10-year yield slipped to 3.54% after hitting its highest level since 2011.

Stocks fell Tuesday, the first day of the Federal Open Market Committee’s meeting. The Dow shed 1.01%. The S&P 500 and the Nasdaq Composite fell 1.13% and 0.95%, respectively.

The dollar index, which has been on a tear in recent weeks, notched a fresh high of110.869 on Wednesday.

Portfolio:

Fed day and we enter it holding positions in AG, AEHR, PINS, STEM, and COMM. Really all that matters today and we cannot wait for this event to come this afternoon and for it to be over.  Remember the trend on Fed Day, first reaction is typically the wrong direction.  Be patient and allow price activity to materalize.  Once tis event passes we have a pathway that will emerge and we antici[ate the focu of the markets o shift towards mid-terms and a few other variables.  Key lines, 3800 on the S&P.  Be reayd today and let's have a great session.  It's time to absolutely crush it this Fall season and end 2022 with a monster close!