March 2, 2023

Markets:

S&P 500 futures slid Thursday, as traders fretted over a continued rise in interest rates.

Futures tied to the S&P 500 fell 0.5%, while Nasdaq-100 futures dropped 0.8%. Dow Jones Industrial Average futures bucked the trend, eking out a small gain as Salesforce. CRM is popping in premarket.

Tesla shares, popular with retail investors, lost 5% after the company failed to unveil details of any next-generation vehicles during its much-anticipated investor day Wednesday. The decline put pressure on S&P 500 and Nasdaq-100 futures.

Rates, meanwhile, pressed higher, with the benchmark 10-year note yield trading above 4%. The 2-year note yield reached levels not seen in more than a decade.

Wall Street is coming off a mixed session, with the S&P 500 and Nasdaq Composite falling Wednesday, while the Dow posted a small gain. The S&P 500 and the Nasdaq are on pace for their second consecutive losing week for the first time since December. The Dow, meanwhile, is on track for its fifth consecutive negative week, a first since May 2022.

On the economic front, investors await jobless claims, and unit labor costs and productivity data. A speech from Fed Governor Christopher Waller is also slated for Thursday afternoon.

Portfolio:

Great start to the month and We enter todays session holding positions in CENX, FLNG, and VKTX. All focus the last few sessions has been on the rising benchmark 10-year note as well as the 2 year. The interesting thing yesterday was the ODTE Call buyers that stepped right in along with vol sellers. These are not retails trades. These are large blocks and institutional buying of the market all while the 10 year hit 4%. So, what does this tell us? Market has support and continues to look forward knowing this rise is temporary with the benchmark. Only explanation we see right now. Watching this closely but again we have stated we will not get off the momentum / trend lane while it continue to work. Silence the noise and proceed forward with banking on opportunity we are given month to month. What a start to the year and let's keep it going!