September 22, 2022

Markets:

U.S. stock futures were slightly higher on Thursday morning following a big decline in the major averages as traders weighed another large rate hike from the Federal Reserve.

Stocks closed lower on Wednesday, continuing the recent sell-off trend as investors evaluated the Fed’s latest comments. The Dow slumped 522 points. Both the S&P 500 and Nasdaq Composite shedding more than 1.7% each, putting both averages at their lowest levels since June 30 and July 1, respectively. The big drop in equities came in a volatile period after the Fed’s third consecutive 0.75 percentage point rate increase.

Policymakers on Wednesday pledged to continue raising rates as high as 4.6% in 2023 before pulling back in the fight against inflation, spurring fears on Wall Street that the economy could tip into a recession as the central bank aims to slow economic growth.

The Fed expects to raise its year-end rate to 4.4% in 2022, continuing aggressive action against rising prices through the remainder of the year.

On the economic front, the latest data on weekly jobless claims is expected Thursday at 8:30 a.m. ET.

Portfolio:

We enter the new trading session holding positions in APPS, AG, PINS, STEM, and COMM.  Insane price action yesterday after the Fed and continue to watch the trend lines we've identified for you. Key line; 3800 on the S&P. If it breaks and hold, we have true confirmation of short term bear market. Right now, so many bearish signal's triggering but would anyone be surprised if we begin to march right back to 4000 plus in the S&P short term? We will be watching the trend lines closely and once our signal's confirm; get ready! Be ready today for updates and potential trade alert. We are getting close to attacking this market. Let's have a great session.