December 12, 2022

Markets:

U.S. stock futures were fractionally higher early Monday ahead of a week with several anticipated events in the ongoing fight against inflation.

The move in futures comes as investors will be focused on inflation this week. On Tuesday, the November consumer price index will be released, and traders will be looking for a sign that inflation is slowing.

The Federal Reserve has a two-day meeting starting the same day. The central bank is expected to announce another rate hike on Wednesday, though traders are anticipating a smaller move than in recent months.

In addition to the expected rate hike, the Fed’s updated economic projections and Chair Jerome Powell’s press conference could be key signals for what the central bank wants to do in the coming months.

U.S. Treasury Secretary Janet Yellen foresees a “substantial reduction in inflation” by the end of next year, provided there’s no “unanticipated shock.”

Portfolio:

We enter the new trading week holding positions in RUN, CCL, and M. What a week we have in store! Fed, rate decisions, data points, and OpEx. We also noticed towards the end of last week monster OI numbers that easily outnumbered OI by 2×1. Should be an absolute wild week, especially with the Fed on tap. We are watching option flow and price activity super close early on today. We want to see if bigger lots trade ahead of all this activity this week. Be ready! This is the week we waited for! After this week, shift adjusts, and you will have you end of year trade in place. So much opportunity to come! Let's have a great week!