June 2, 2023

Markets:

Stock futures rose as traders looked ahead to Friday’s May jobs report and cheered lawmakers passing a debt ceiling bill that averts a U.S. default.

Investors are watching the jobs data due at 8:30 a.m. ET for clues on the Federal Reserve’s futures policy moves. Economists surveyed by Dow Jones expect that growth eased in May over the previous month, with 190,000 jobs added versus the 253,000 gained in April. That would mark the lowest monthly gain since December 2020.

Easing concerns around the U.S. debt ceiling also helped sentiment. The Senate passed a bill to raise the debt ceiling late Thursday night, sending the bill to President Joe Biden’s desk. That comes after the House passed the Fiscal Responsibility Act on Wednesday, just days before the June 5 deadline set by U.S. Treasury Secretary Janet Yellen.

As the holiday-shortened trading week draws to a close, both the S&P and Nasdaq are on track to finish with gains of around 0.4% and 1%, respectively. The Nasdaq could notch its sixth straight weekly advance, a streak length not seen since 2020. Both the Nasdaq and S&P 500 finished Thursday’s session at their highest levels since August 2022.

Portfolio:

We enter the last trading session of the week holding one setup in ARLO and it continues to build.

We decided to remain patient to make sure we did not get caught any in any wild swings due to the debt ceiling vote. Now we can proceed and technically, the S&P is exactly where we want it and exactly where it can build. The next line is 4350. Dare we break and hold that line and we have the hated rally continue! That would be a monster move above 4350! So many doubted our call of 4200, wanted us to short at 3800, then 3900, then 4000, 4100, etc.. This is exactly why this rally could become so aggressive to the upside. So much money is on the sidelines and so many are still chasing that short position. Above 4350 forces so many hands and few understand this.

The next several months, due to a few more outstanding events to come, will trigger massive opportunity. I truly hope folks understand the opportunity ahead in this market and we will continue to pinpoint it all! This is just beginning!