October 17, 2022

Markets:

Stock futures rose Monday as investors weighed key earnings reports after a wild week of trading.

Monday’s moves came as the British pound rose on more policy reversals from the UK government. New UK finance minister Jeremy Hunt announced that almost all planned tax cuts would be scrapped. The pound traded 1% higher at $1.127 per U.S. dollar.

The S&P 500 just came off its fourth negative week in five with a 1.6% loss last week. A hotter-than-expected inflation reading stoked wild price swings in the markets as investors readjusted their expectations for the Federal Reserve’s coming rate hikes.

Meanwhile, the third-quarter earnings season has kicked off. Investors are monitoring if corporate America will have any significant downward revisions to their outlooks in the face of stubbornly high inflation and the economic slowdown.

Many notable technology names are also reporting this week, including Netflix, Tesla, and IBM

Portfolio:

We enter the new trading week holding set-ups in LI, KLIC, MPW, NBIX, and PARA.  Really excited for this week and the new few to come with monster earnings on deck.  The opportunities to form should be tremendous.  We do enter the session after experiencing a wild roller coaster week within the markets.  They absolutely crushed both sides of the trade at different points last week.  This week we look to see how price activity materalize, especailly early on.  Our levels are still key point.  3640 on the S&P needs to be recaptured and needs to hold!  This is so key and cannot stress this enough.  Be ready this today and this week.  Let's have a great session ahead.