January 11, 2023

Markets:

Stock futures rose Wednesday as Wall Street looked to build on what has been a positive start to 2023 so far.

The moves come after the Nasdaq Composite rose 1.01% on Tuesday to clinch its first three-day winning streak since November. The S&P 500 and Dow rose 0.70% and 0.56%, respectively, and all three averages are positive for the young year.

2023 has brought a relief rally so far for more risky areas of the market, such as tech, but many investors are still cautious ahead of earnings season and further expected rate hikes from the Federal Reserve.

Wednesday features a light schedule for economic data, but investors will be gearing up for a key inflation report on Thursday and major bank earnings on Friday. European markets opened mixed as investors gear up for more inflation data this week, with U.S. consumer price data for December due Thursday.

Portfolio:

We enter the new trading session holding positions in CLF, PDSB, UMC, and FLYW. Well positioned for this current trade cycle and now just need a bit more follow through and we should be rewarded with these current set-ups. Market is developing absolutely beautifully technically and longer picture is now taking shape as well with potential new support lines / previous gap fills, etc.. So many beautiful set-ups now emerging with strong bull flags. Truly hope we see some nice follow through, and the next few months could provide spectacular trading / rewards. Stay patient however, we have CPI tomorrow and that – to us – is the final piece short term until the Fed in February. We actually think earnings will not be as "bad" as some expect – so much has been priced in already – and we can see a nice more through February should this maintain. If not, then we need to be prepared to move to downside trades quickly. Be ready today and let's have a great session.