December 29, 2022

Markets:

S&P 500 futures rose on Wednesday night, as investors head into the final trading days of 2022.

The futures action follows a broad sell-off during the regular session Wednesday as recession fears weighed on investor sentiment in a losing week, month and year. The Dow lost 365.85 points, or 1.1%. The S&P 500 fell 1.2%, while the Nasdaq Composite dropped 1.35%.

European markets retreated on Thursday as caution returned to global stocks, with investors assessing a number of likely headwinds in 2023.

Energy is shining for the fourth quarter and the year, however. It’s up 19.6% for the final three months of the year, and up about 56.4% for 2022.

On the economic data front, filings for unemployment insurance rose to 225,000 in the week ended Dec. 24. from the prior week's reading of 216,000, the Labor Department said Thursday.

U.S. Treasure yields dipped, and the U.S. dollar index also retreated.

U.S. and global stocks are on pace for their worst drop since the 2008 financial crisis.

Portfolio:

We enter the new trading session holding positions in FAZ, AAL, and ZIM.  Trend line breached yesterday and now this morning is this a real fight by the bulls or a headfake and do we continue to break lower?  Crucial day technically – although I hate to say that with such light volume – but technically the lines have been breached.  The real test will be when volume returns next week but we need to respect what the trend is now doing and tsee how it reacts.  Be ready today for further updates and remain patient.  No reason to chase any time of move until volume returns next week.  Let's have a great session.