March 6, 2023

Markets:

U.S. stock futures were flat Monday as Wall Street looked ahead to a week filled with economic data and the latest commentary from the Federal Reserve.Traders are coming off a positive week for the major averages. The Dow industrials added 1.75% last week, ending a four-week losing streak. The S&P 500 advanced 1.90%, while the Nasdaq capped the week with a 2.58% pop.

Those gains come even as the yield on the benchmark 10-year Treasury note rose above the psychological 4% level at various points last week. An upward move in the 10-year yield raises borrowing costs for consumers and could signal a drop in investor confidence.

Important catalysts this week include congressional testimony Tuesday and Wednesday from Fed Chair Jerome Powell, who will guide investors and lawmakers on how the central bank is thinking about inflation and its rate-hiking campaign going forward.

Traders are also anticipating the February jobs report on Friday, which follows January’s blockbuster report that showed the economy added 517,000 payrolls. Economists polled by Dow Jones are expecting 225,000 jobs added last month.

On Monday, the latest factory orders data will also be released after the bell. Economists are expecting a decline of 1.8% in January, according to consensus estimates from Dow Jones. That’s compared to a 1.8% gain in the prior reading.

European markets are heading for a positive start to the new trading week. Data releases include euro zone retail sales for January and Germany’s industrial orders for the same month.

Portfolio:

We enter the new trading week holding set-ups in TSLL, CENX, and FLNG. We will be looking to add new set-ups this week so please be ready. Strong start to the month for us and we continue to navigate opportunity and the twist and turns this market has provided. Technically, look where we are on the S&P once again and where we could be headed too short term. Once again, every opportunity to break down and market refused. Keep that in mind and folks continue to hate this rally or current range we are in. The pain trade is very clear, too many folks want the market to break down and are positioned short. Just need to put a certain channel on and listen to "experts" tell you how poor everything is but they always seem to forget to point out that the market is not trading based on today but rather where it believes we will be 12 to 24 months out. An election is coming in 2024, just keep that in mind as well. Be ready and let's continue to build!