June 28, 2023

Markets:

S&P 500 futures inched lower Wednesday as traders digested a broad market rally in the previous session.

Chip stocks fell in the premarket after The Wall Street Journal reported that the U.S. was considering new export restrictions to China. Nvidia shares lost 4%, while AMD fell more than 3%. the iShares Semiconductor ETF (SOXX) slid 1.5%.

Investors are preparing to close out the best first half for the Nasdaq in 40 years, as they ride a wave of optimism around artificial intelligence that has significantly buoyed a handful of mega-cap tech stocks. The S&P 500 and Nasdaq Composite are higher this year by 14% and 29%.

Federal Reserve Chair Jerome Powell will speak Wednesday morning before a policy panel at the European Central Bank Forum on Central Banking in Sintra, Portugal.

Powell will be joined by Bank of England Governor Andrew Bailey, European Central Bank President Christine Lagarde and Bank of Japan Governor Kazuo Ueda. Markets will be looking for more clues from Powell about the future of U.S. economic policy. Recently, the Fed chair said he expects additional interest rate increases on the way to battle inflation, though he thinks the central bank can do so at “a more moderate pace.”

Portfolio:

We enter the session holding positions in S, SOFI, EXEL, and DKNG (love how this is building and DKNG has the potential to rip over the next week). End of month and end of quarter trading is upon us along with the wild swings we've come to expect for this period. Sit on your hands and only trade A+ set-ups. Do not chase day to day moves. We are positioning ourselves for what we see coming after the holiday break and the summer months. We've had an outstanding start to the year, but the real excitement is at our doorstep, not just where this market is technically and continues to hold the line, but seasonal summer trades set to begin, and the Election cycle will officially kickoff in August which will bring MONSTER opportunity. The next cycle of trades will be some of the best yet. Be on alert today!

U.S. planning to revise its export controls on AI chips to limit China's access to advanced technologies with military application