December 19, 2022

Markets:

Stock futures rose Monday after the major averages posted their second straight week of losses for the first time since September. Investors also struggled to shake off recession fears.

The moves followed another down week for stocks after the Federal Reserve delivered a 50 basis point short-term interest rate hike and signaled higher-for-longer rates. Recession fears mounted as the central bank upped its forecast for future hikes above previous expectations, saying that it now expects to hike rates to 5.1%.

Investors will also be watching for a few earnings reports due later in the week. FedEx and Nike are both scheduled to report earnings results on Tuesday after market close. As recession fears mount, earnings results will become more of a focus.

Here’s where the major averages stand heading into one of the final trading weeks of 2022:
Dow Jones Industrial Average – 10.91% off its record high
S&P 500 – Sits 20.05% off its record highs
Nasdaq Composite – 32.68% off its highs

Portfolio:

We enter the new trading week holding set-ups in ZIM and UNG. Really interesting week for the markets. Setup for a Santa Rally or do we continue to breakdown. Under 3900 remains bearish. Break below 3800 and we could see 3500 super quick. However, should we build back up and close above 3900 on the S&P, we could test 4100 once again. These have been key levels for the market and we've been in this range now for a bit. Allow this to materialize a bit more today, stay patient, and then we proceed with next level opportunity. Queue is beginning to trigger, just want to see a bit more price activity since we are fairly close to the 3900 mark. One thing is certain, the start of 2023 is setting up to be super explosive based on these trend lines. Either we breakout or breakdown. Just feel like market is trying to hold us in this range for now. Be ready and let's have a great session.