June 22, 2023

Markets:

Stock futures were lower Thursday after the market suffered three consecutive days of declines as the tech-powered rally faded.

Investors this week are taking profits on some of the winners that have been leading the stock market’s breakout. Tesla shares were down 3% in premarket trading after the second major Wall Street bank in as many days downgraded the high-flying retail trader darling that has doubled this year. Morgan Stanley analyst Adam Jonas, a longtime Tesla bull, revised his rating Thursday to equal weight from overweight. He said the stock presents “a more balanced risk reward” after its rally.

The tech-heavy Nasdaq Composite fell 1.2%, suffering its worst daily performance since June 7. Big winner in artificial intelligence AMD dropped 5.7% Wednesday, while Intel retreated 6%. The Dow Jones Industrial Average slipped 0.3%.

The Fed kept rates steady at last week’s policy meeting after 10 consecutive hikes. However, officials indicated there could be two more quarter-percentage point increases this year.

Powell will deliver his Semiannual Monetary Policy Report to the Senate Banking Committee on Thursday morning. Investors will look for further comments on inflation and interest rates.

Investors will also monitor weekly jobless claims data Thursday morning, which is expected to show a total of 256,000, according to economists polled by Dow Jones.

Portfolio:

We enter the new trading session holding positions in IQ, NIO, DKNG, and ARLO. Last few sessions have been tough for daily traders but the overall picture remains. Do not chase the day to day moves and allow price to materialize. This is an extremely healthy pullback and as long we the S&P holds 4350, this is just noise. Patience now and just be ready to attack this market. Technically, we are still in a wonderful position and this pullback is only creating further opportunity. The ones the fail to see this are the ones who continue to chase the day to day moves and are always chasing rather than positioning themselves to profit from the overall greater move. The pain trade remains intact; higher. We will only become concern should we see a break and hold below 4350. Be ready and on alert. Yesterday we began to see monster call lots being bought, especially with AMD through the 140's! The positioning has begun.  Be patient and ready.