November 18, 2022

Markets:

Stock futures rose Friday as investors continued evaluating earnings reports and tougher language from Federal Reserve speakers.

Friday’s moves come after a down session on Wall Street after comments from Federal Reserve officials raised concern over tighter U.S. monetary policy.

St. Louis Federal Reserve President James Bullard said Thursday that “the policy rate is not yet in a zone that may be considered sufficiently restrictive.” He suggested that the appropriate zone for the federal funds rate could be in the 5% to 7% range, which is higher than what the market is pricing.

Investors will watch Friday for data on existing home sales for any indication of a cooling economy. Boston Fed President Susan Collins will speak in the morning.

European markets were modestly higher on Friday as investors continue to assess the trajectory of monetary policy after some tough statements from U.S. Federal Reserve officials.

Portfolio:

We enter the last trading session of the week holding positions in AEHR and PLTR. We want to continue to position ourselves further for what we see developing over the next few weeks. Next week, provides us a strong amount of seasonality trades. It will be interesting to see if even in these markets, historical trends continue on during the upcoming holiday week.

Look where we are on the S&P; potentially testing 4k. Yesterday we had every opportunity to break below 3900 and failed to mount downside pressure. Short term, for technical traders, strong reaction and positive price activity. Be ready today for further updates and a potentially new trade alert.