November 29, 2022

Markets:

Futures connected to the S&P 500 rose Tuesday as investors looked to shake off Monday’s slide.

The move follows stocks in Hong Kong and Shanghai rallying overnight as a Chinese official told reporters that 65.8% of people “over age 80” had received booster shots. On top of that, the government reported the first decline in Covid infections within mainland China in more than a week.

Those updates follow the declines in U.S. and foreign markets seen Monday after protests in mainland China against the country’s zero-Covid policy started over the weekend. All three of the major U.S. indexes ended the day down more than 1% and West Texas Intermediate crude futures briefly fell to their lowest point since last December as investors grew increasingly concerned about if Chinese Covid protocols could hamper global supply chains.

On the economic front, traders will watch for the September reading of the S&P CoreLogic Case-Shiller Home Price Index that is due Tuesday before the bell. The report will give investors insight into how higher interest rates are affecting the housing market. Home prices in the prior month jumped about 13% year over year.

Meanwhile, the latest reading on consumer confidence is set to release at 10 a.m.

Fed Chair Jerome Powell is scheduled to speak at the Hutchins Center on Fiscal and Monetary Policy at Brookings on Wednesday. Investors will be listening for insight into the central bank’s fight against inflation.

Portfolio:

We enter the new trading session holding positions in CWH, M, and AR.  Markets continue to swing here as traders continue to digest the news building from China as well as listening closely to Fed speakers and trying to position themselves properly to end 2022.  This cycle continues to build opportunity within certain sectors and we continue to remind everyone that technically, 3940 – 3950 is our next area of interest.  Unless we break and hold that level, we will continue to be patient and allow this to materialize.  Queue continues to ignite, we just lack follow through right now with this market on both sides of the trade.  This should begin to change as we head into the final month of the year.  Be ready today and let's have a great session.  Stay patient!