January 3, 2023

Markets:

Stock futures rose Tuesday as Wall Street tried to start the new year on a strong note.

Investors are looking for signs that the global economy will continue to recover in 2023 and lift stocks as issues that weighed on markets in 2022 subside. While there are fears that the Federal Reserve’s rate hikes to tame high inflation could push the U.S. economy into a recession, it would also likely lead to a pause in rate increases or a pivot to cutting rates in the latter part of the year, which could boost equities.

History also shows the U.S. stock market tends to rebound after down years. In fact, the S&P 500 has, on average, rebounded by 15% in the next year following a year where it lost more than 1%.

Investors are getting a bundle of data in the first trading week of the year that will give further information on the state of the economy. First up are S&P Global manufacturing PMI and construction spending, due out at 9:45 a.m. and 10 a.m. ET on Tuesday.

Wednesday is a big day with the Job Openings and Labor Turnover Survey, better known as JOLTS, due out in the morning and the minutes of the Fed’s latest policy meeting set to come out in the afternoon.

They’re also looking forward to Friday’s December jobs report, the final employment report the Fed will have to consider before its next meeting on Feb. 1. There are also several speeches by Fed presidents scheduled Thursday and Friday.

Portfolio:

We enter the new trading year, week, and session holding positions in FAZ, AAL, and ZIM. We are diving into all data points and trading activity early on this morning. It will be interesting to see how we trade the first hour of trading and the type of volume we see. This week we fully anticipate a volume surge to come back into the market and continue to build daily this week as traders return from holiday. It will be very interesting to watch trend lines and how we react to them. This is showtime and then we expect opportunities to fully ignite and providing us one of the best trading opportunities early on. Sta tuned for updates and be ready. Let's have a great session and let's have an outstanding month to start the new year!