December 30, 2022

Markets:

Stock futures moved lower in premarket trading Friday as investors braced for the final trading day of the worst year for stocks since 2008.

Futures tied to the Dow Jones Industrial Average slipped 153 points, or 0.5%. S&P 500 and Nasdaq 100 futures traded lower by 0.7% and 1.1%, respectively.

Friday marks the final day of trading of what’s been a painful year for stocks. A volatile bear market, sticky inflation, and aggressive rate hikes from the Federal Reserve battered growth and technology stocks. These factors also weighed on investor sentiment.

As the calendar year turns the corner, some investors think the pain is far from over, and expect the bear market to persist until a recession hits or the Fed pivots. Some also project stocks will hit new lows.

On the economic front, Chicago PMI data for December is due out Friday. Next week will see a slightly more active slate for economic data, highlighted by the nonfarm payrolls report set for Jan. 6. Financial markets are closed Monday in observance of the New Year’s Day holiday.

Portfolio:

We enter the last trading day of 2022 holding setups in FAZ. AAL, and ZIM.  Queue was igniting yesterday but we just did not want to chase anything in the current range we're in.  Right now seems we are stuck in neutral as the market await volume to return next week.  Volume is so light that it's hard to decide if these moves are real or not.  But, the trend remains and once again we are placed right in the middle of 3800 – 3900.  No conviction of a break either way but this will change next week – we believe  – and then we expect monster moves to build. Early on in 2023, would not be surprised to test 3500 on the s&p and actually break below before we bounce hard and enjoy an outstanding rally to the upside as traders look forward to 2024 elections / policies / inlfation control / etc.. Reemmerb the market is forward looking 12 to 18 months. Trade the trend and early on in 2023 wwe should be gifted an outstanding trend line.  Potential to be a monster one in fact!

Please be ready next week.  We want to wish you all a healthy and prosperous new year.  If anything triggers of significance we will be sure to alert but we cannot sress enough to be ready come Tuesday for the start of a new trading year and all the opportunities it will bring us!