March 23, 2023

Markets:

Stock futures rebounded on Thursday from a 500-point loss in the Dow Jones Industrial average as investors bet the Federal Reserve was done hiking interest rates.

Regional banks rose in the premarket, with the SPDR S&P Regional Banking ETF (KRE) climbing 1.7%. First Republic was the best performer, gaining more than 10%. PacWest and Western Alliance also advanced.

Wall Street is coming off a tough day, with the Dow losing more than 530 points, or 1.6%, on Wednesday. The S&P 500 and Nasdaq Composite each dropped more than 1%. The Fed’s decision and subsequent comments by Chair Jerome Powell at the conclusion of the policymakers’ two-day meeting weighed on stocks.

A sharp drop in regional bank stocks also weighed on the market, as well as comments from Treasury Secretary Janet Yellen, who said the U.S. is not currently working on “blanket insurance” for bank deposits, in comments to the U.S. Senate appropriations subcommittee.

Traders are looking forward to the weekly jobless claims update at 8:30 a.m. ET. New home sales data will also be released.

Portfolio:

We enter the new trading day holding one position in BAC.  Booked a few monster returns yesterday while also deciding to stay on the sidelines yesterday and allow price to materailze and work itself out before adding any new setups.  Glad we did as the market swwung with force in the last two hours oof the session.  Absolutely wild price activity from running higher on the Fed to tanking on Yellen's comments regarding insurance on bank deposits.  In any case, no harm at all to us and now we are ready to attack this market and all it's opportunities.  Reminder; this is not the market to chase day to day movemment.  Not yet!  Right now we plan the set-ups based on activity and it's been absolutely producing monster returns in 2023.  Let's continue to follow the trend and be ready.  Let's have a great session.