October 31, 2022

Markets:

Stock futures were lower early on Monday morning ahead of the final day of October, with the Dow Jones Industrial Average poised to clinch its best month in decades.

The Dow is up 14.4% in October, which would be its best month since 1976. The S&P 500 and Nasdaq Composite are also up for the month, putting Wall Street on track to snap a two-month losing streak.

The gains have come despite a mixed third-quarter earnings season from major companies, which has shown slowing growth and a few major disappointments from large tech companies. The season continues with Uber, Pfizer and Advanced Micro Devices among the biggest names to report.

Traders are preparing this for the latest Federal Reserve meeting beginning Tuesday. The central bank is expected to hike rates by three quarters of a percentage again on Wednesday, but many on Wall Street are looking for a signal from the statement or Chairman Jerome Powell’s press conference that the Fed could pause its hikes in the near future.

Euro zone inflation soared by 10.7% from a year ago during the month of October as the 19-member bloc grapples with higher food and energy prices accentuated by Russia’s invasion of Ukraine. This represents the highest monthly reading ever since the euro zone’s formation.

Portfolio:

We enter today's session holding positions in SRTS, CAE, PLTR, FIGS, SNAP, and ALLY.  What a week we have in front of us.  End of month trading today, new month begins tomorrow, Fed decision on Wednesday, new earning reports, and so much more with seasonal and mid-term trades kicking in.  End of year trading / position will begin to ramp up as well in the coming weeks.  So much to be excited for the prospect of new cycles beginning.  Technically, we are still watching 3840 – 3850 level to the downside.  Upside, could continue to melt up to 4100 on the s&p – something no one believes would happen.  Again, will all be decided by the Fed's decision on Wednesday but technically we absolutely love whats developing here.  Be on alert today and this week monster week in front us.  Expect further updated as well as new trade triggers.  Let's have a great session.