June 20, 2023

Markets:

Stock futures fell Tuesday as Wall Street struggled to carry over the positive momentum from last week.

Markets were closed Monday due to the Juneteenth holiday.

Investors are coming off of a strong week, even as the major averages had slipped on Friday. The S&P 500 and the Nasdaq Composite posted their best weekly performances since March, with the broad-market benchmark rising 2.6% and the tech-heavy index adding 3.25%. It was also the S&P 500′s fifth positive week in a row — a first since November 2021 — and the Nasdaq’s eighth consecutive positive week, a feat it previously accomplished in 2019.

Investors were seemingly receptive toward the central bank’s decision to skip a June rate hike last week. Federal Reserve Chairman Jerome Powell told a press conference on Wednesday that the central bank has yet to make a decision on policy ahead of the July meeting. However, policymakers are forecasting two more quarter-point rate increases later this year. The decision to skip a hike in June broke the Fed’s streak of ten consecutive interest rate increases.

In earnings, investors will look toward a quarterly report from shipping giant FedEx on Tuesday after the the closing bell.

U.S. Treasury yields were mixed Tuesday as trading resumed after Monday’s Juneteenth holiday. In a week that is light on the data front, investors awaited comments from Federal Reserve officials that could provide fresh details about the outlook for interest rates.

Portfolio:

We enter the new trading week holding positions in NIO, PATH, DKNG, and ARLO.  Monster month and year thus far and now we continue to isolate opportunity.  The best trading period is just beginning and do not get shaken by the head fakes at times in this market.  4350 on the S&P was key.  Continue to hold it and build off of it and the real pain trade begins as we discussed through 2023.  This has all played out as we discussed month after month once we saw the trend forming and what we expected to happen.  Bears have now been chasing since short since the 3600 range on the S&P.  Be ready today but remain patient.  All the market to materalize after a long holiday weekend.  No reason to chase any moves here.  Let's have another great week.