June 8, 2023

Markets:

Stock futures were flat on Thursday, as investors awaited the next market catalyst and digested the recent rally in stocks.

The S&P 500 and Nasdaq Composite are coming off a down session. The broad-market index closed 0.38% lower, while the Nasdaq dropped 1.29%. The 30-stock Dow
 was the outlier, with a gain of 0.27% or 91.74 points.

Investors seem to be in a holding pattern while awaiting the Federal Reserve’s upcoming policy meeting on June 13 and 14. Economic signs suggest that inflation is inching down, even as it remains above the central bank’s 2% target. Wage growth, for instance, is slowing. Wages rose 5.3% on an annual basis in May, down 0.4 percentage point from April, according to data from Indeed. Markets are pricing about a 66% chance that the Fed keeps rates steady at the next meeting, according to the CME FedWatch Tool.

The small-cap Russell 2000 index is up nearly 8% this month alone, recovering some ground against its large-cap rivals.

The 4,300 level on the S&P 500 will be key for the market as investors weigh whether Wall Street’s recent rally can continue. On Wednesday, the broader market index reached a high of 4,299.19.

Portfolio:

We enter the new trading session holding positions in NU, TSLL, and ARLO.  Wild session yesterday but overall picture remains strong. Nice too continue to book profits yesterday as well.  Stay patient and alow the price action to continue to build.  Absolutely love to hear all the bear talk now.  As soon as a session goes red, bears come in.  They've been chasing this now for over 600 points to the upside on the s&p.  Think about that.  Just put cnbc on and it's a daily narrative.  This is why above 4350 the real pain trade will begin and it'll be a monster.  Be ready today and let's have a great session.