November 7, 2022

Markets:

U.S. stock futures rose Monday as a packed week kicked off, with congressional midterm elections and key inflation data on deck over the next few days.

Those gains came even as Apple fell 1% after the tech company said iPhone production has been temporarily reduced because of Covid-19 restrictions in China.

Tuesday’s midterm election will determine which party will control Congress, and impact the direction of future spending. Democrats currently control the House, and have a majority in the Senate.

On the economic front, investors are anticipating Thursday’s CPI report will give further insight into the Federal Reserve’s efforts to squash inflation. A hot inflation report could signal to investors that a pivot from higher interest rates, for longer, could be further away than expected.

Apple said in a statement on Sunday that it has temporarily reduced iPhone 14 production because of Covid-19 restrictions at its primary iPhone 14 Pro and iPhone 14 Pro Max assembly plant in Zhengzhou, China. Apple’s warning brings up the possibility that it may sell fewer iPhones in the December quarter because it is having trouble making enough to meet demand. It previously signaled slowing growth in the December quarter last month.

Portfolio:

We enter the new trading week holding positions in WTI, TWNK, SOFI, and SNAP. Tomorrow, we have the highly anticipated mid-terms and all historical trades it brings with it. Such an exciting week with monster market movers in place. Queue is igniting and we hope to see continuation with the markets for the following few weeks. Continue to watch the trend lines we defined; these lines have been absolutely outstanding trigger points. Be ready this week and expect a busy week ahead! Let's have a great session!