October 18, 2022

Markets:

Stock futures rose Tuesday morning after the Nasdaq Composite posted its best daily performance since July.

Nasdaq 100 futures climbed 1.8%. Futures tied to the Dow Jones Industrial Average gained 357 points or 1.2% and S&P 500 futures jumped 1.5%.

The moves came after a winning day on Wall Street to start the week. The Dow Jones Industrial Average popped about 550 points, coming off a volatile past week of trading. The S&P 500 also rose 2.65% for the day. The Nasdaq surged 3.43% as tech stocks rebounded, led by names such as Amazon, Meta Platforms and Microsoft. It was the best day for the tech-heavy index since July 27.

In addition, another pivot from the U.K. bolstered markets. Jeremy Hunt, the new U.K. finance minister, announced Monday that he would reverse nearly all announced tax cuts and walk back an energy subsidy.

Investors are watching for any sign that the stock market has bottomed and the new rally may be the start of a new bull cycle. Some analysts aren’t so sure that the bottom is in, however, and many see more pain ahead.

Third quarter earnings season continues Tuesday, with a slew of companies reporting results before and after the bell. 

Portfolio:

We enter the new trading session holding positions in JKS, LI, KLIC, MPW, and PARA.  We will be watching price activity closely at the opening bell.  Although futures look positive we see some concerning price action in Bonds, VIX, and a few other indicators we love to monitor.  TLT is also worth noting and continues to weaken.  Watch the trend lines closely we identified.  3720 on the S&P next level to hold.  Would be super positive if it can maintain and if so we could begin to see a shift.  Watch this closely.  Be on alert today and stay patient.  Monster earnings coming and will be a driver to this market short term.  Let's have a great session.