February 6, 2023

Markets:

U.S. stock futures fell Monday as investors awaited more earnings and an important speech from Federal Reserve Chairman Jerome Powell.

Markets will likely be on edge ahead of a speech by Federal Reserve Chairman Jerome Powell Tuesday before the Economic Club of Washington. Powell’s comments on disinflation caused investors to bid shares higher last week and overlook another rate hike out of the central bank. There is very little economic data due Monday.

Investors seem to be looking past rate hikes and poor earnings and focusing on recent data that is showing inflation trending lower in the hopes that the economy is headed for a soft landing and profits will be revived later in the year.

The halfway point to earnings season was hit on Friday morning, with exactly 250 S&P 500 companies having reported now. In the week ahead, 89 companies in the S&P 500 companies are set to report along with one Dow component also headlining earnings this week: Disney.

Portfolio:

Terrific start to the year and we enter the new trading week holding only one position in TGTX and ready to absolutely unload on this week. So many new set-ups emerging, and the queue has been igniting with force. We do have one level of caution with Federal Reserve Chairman Jerome Powell speaking on Tuesday before the Economic Club of Washington. We do not expect him to sway from his comments last week but do need to be a bit cautious there. Technically, we sit at a monster spot and so many stocks have the potentially to absolutely breakout. But we need confirmation before we begin to move forward on these names. The S&P over 4100 and maintaining this level is key to build. Watch this level closely. Be ready and let's continue to pinpoint monster opportunity!