January 23, 2023

Markets:

Stock futures were little changed Monday as investors weighed a potential slowdown, or pause, from the Federal Reserve and braced for a busy earnings week.

On Friday, the major averages rallied to finish the week after briefly losing the momentum of the January rally. The Nasdaq posted a slight gain for the week. However, the Dow and S&P each logged losing own weeks. All of the major averages remain in the green for the month. The Nasdaq is leading the others with a 6.44% year-to-date gain.

Investors have been weighing the possibility that the Fed is getting ready to slow the pace of its inflation-fighting rate hikes after economic data last week showed a decline in wholesale prices and retail sales.

On Friday, investors absorbed comments from Fed Governor Christopher Waller favoring a quarter percentage point rate increase at the next meeting. A Wall Street Journal report Sunday, meanwhile, raised the possibility of a spring pause to rate increases — a sign that the Fed could be nearing the end of its rate hiking campaign.

No speeches from Fed officials are on the calendar ahead of the central bank policy meeting on Jan. 31 and Feb. 1. Investors, however, will monitor another batch of economic data, including the Fed’s preferred inflation measure, the personal consumption expenditure price index, due out Friday.

In the meantime, earnings reports could keep the market on edge, with about 40% of the Dow scheduled to release their latest financial results and offer more insight into how companies are weathering inflation and interest rates. Some of the big names on deck include Microsoft, IBM, Tesla, Visa and Mastercard.

Portfolio:

We enter this week filled with so much opportunity in front of us and the beginning of massive earnings reports. We are beyond excited to not only receive these reports this week for further insight into specific sectors but also to see the queue igniting with so much activity this morning based on Friday's action and this morning premarket movement. If you love to trade trends and are a technical trader; no better time than right now coming off the year this market just had. Technically, we could set new trend lines / support lines and it's exciting to be in on this from the beginning. New patterns developing and new sectors igniting.

We enter the new trading week holding setups in FIGS, KPRX, YPF, TSLL, MTTR, and PINS. Love these set-ups continuing to build and form. Be ready this week and let's have an outstanding trading session.