February 13, 2023

Markets:

U.S. stock futures were slightly higher Monday as traders tried to regain their footing following the S&P 500′s and Nasdaq Composite’s worst weekly performances in nearly two months.

These losses came after Federal Reserve Chairman Jerome Powell said that there is still a long way to go in the fight against inflation. Powell also noted that interest rates could rise more than markets anticipate if inflation numbers do not abate, reversing some of the prior market optimism that rate hikes would soon ease. 

Investors are watching out for the consumer price index numbers on Tuesday for insight into the pace of inflation, as well as retail sales data. Traders will monitor the CPI reading for a better understanding of how the Federal Reserve will proceed with its monetary policy in its fight against inflation.

The final leg of earnings season also continues next week, with Coca-Cola, Marriott, Cisco, Marathon and Paramount set to report.

Portfolio:

We enter this new trading week holding positions in TGTX & CPRI.  We absolutely will be adding new set-ups this week and with CPI to be released tomorrow, expect monster opportunities to generate / flag from the number and anticipation on next steps from the Fed.  Absolutely love to trade ste-ups emerging from CPI lately and the trend lines being followed.  Overlal, trend remains to the upside (as hard as that might seem) need to see a break below 3900 for a true bear signal to emerge.  Back above 4100 on the s&p in pre, see how this holds but believe we fluctuate today as traders wait for the latest CPI reading.  Be ready and let's have another incredible week.