December 21, 2022

Markets:

Stock futures rose on Wednesday after earnings reports from two major bellwethers raised hopes that corporate earnings may be better than feared even with a possible recession on the horizon.

Nike shares added 12% after the apparel maker beat Wall Street’s expectations for quarterly earnings and revenue. FedEx gained 4.7% even as it fell short of revenue expectations. The package delivery giant beat consensus earnings per share estimates on per-share.

With the end of 2022 in close sight, all three major averages are on pace to post their worst yearly performance since 2008 and break a 3-year win streak. As of Tuesday’s close, the Dow was down 9.6%. For the month, it’s toppled about 5%. The S&P is down 19.82% for the year and more than 6% for December, while the Nasdaq’s plummeted 32.58% in 2022 and about 8% this month.

European markets advanced on Wednesday, reversing a negative trend seen in the previous trading session.

Portfolio:

We enter the new trading session holding set-ups in ZIM, AEHR, and AAL.  Thus far, market is respecting technicals and bounced off the 3800 level we pinpointed.  This could still break either way, next barrier is 3900.  Should we break above and hold, 4100 could come in a flash.  Should be very interesting to see how this plays out over the next few sessions and how the markets set-up.  Regardless, both sides of the trade will provide massive opportunity once the trend is confirmed.  Be ready for that and let's have a great session.