May 22, 2023

Markets:

Stock futures were little changed on Monday morning as traders monitored the negotiations over the U.S. debt ceiling as government officials scramble to avoid a default.

President Joe Biden and House Speaker Kevin McCarthy, R-Calif., are set to meet Monday to continue negotiations. Treasury Secretary Janet Yellen has said the U.S. could default on its debt as early as June 1.

The upcoming week has a relatively light slate of economic data, highlighted by a second reading for first-quarter GDP on Thursday and the personal consumption expenditures gauge, the Federal Reserve’s preferred inflation measure, on Friday.

The release of the Fed minutes on Wednesday from the May meeting could also shed light on how central bankers are thinking about the possibility of further rate hikes.

Fed Chairman Jerome Powell on Friday indicated that stresses in the banking system could slow economic growth and reduce the need for higher interest rates.

Traders will also be keeping an eye on JPMorgan Chase’s investor day on Monday.

Portfolio:

We enter the new trading week holding positions in TSLL, INDI, ASX, and NU.  Outstanding month thus far and we look to now position ourselves to close this month out in a monster way.  Queue continuing to ignite and we want to expose every opportunity to us.  Holding 4200 on the S&P and now breaking towards 4350 is key.  Dare we break above 4350 and we have ourselves a monster rally in place.  Fact is, higher is the pain trade and will cause massive chasing.  Too many were short this year and continue to short this market as it runs higher.  Unless we break below 3890, I am not sure how anyone can make a short term bear case.  We continue to follow our trend lines.  Let's have another great week.