September 25, 2023

Markets:

Stock futures fell Monday with the market set to kick off the final week of trading in September with big losses.

Stocks have struggled this month as the Federal Reserve signaled higher interest rates for longer, sending bond yields rising. The benchmark 10-year Treasury yield has surged more than 30 basis points this month to 4.43%. The market also contended with a rally in crude oil and a winning streak in the dollar during the seasonally weak trading month.

The S&P 500 has fallen 4.2% in September, on pace for its second straight losing month and its worst month since December. The tech-heavy Nasdaq Composite is down 5.9% in September as growth stocks bore the brunt of the sell-off, also headed for its biggest monthly loss since December. The blue-chip Dow is off by a more modest 2.2%. this month.

Investors are also closely monitoring progress on a budget resolution in Washington. Lawmakers over the weekend expressed few signs of movement on a deal that would keep the U.S. government funded for the remainder of the fiscal year.

Portfolio:

As we step into the final week of September, our current positions include CHWY, CLF, and ATEN. We aim to close September on a high note while positioning ourselves strategically for the October/November timeframe.

It's worth noting the trend we highlighted a few weeks ago: historically, the last ten days of September have often been challenging for the markets. However, we anticipate a strong buying opportunity as markets tend to rally towards year-end. The overall market trend and technical indicators remain robust and unbroken.

Despite the growing noise and predictions of a market selloff (which have been ongoing since last December), we advise maintaining focus on the broader technicals and trend. The prevailing sentiment continues to favor upward movement, and the so-called "pain trade" is still in place and in play.

Our community has enjoyed an outstanding year, and we firmly believe that the next 18 months hold even greater promise, especially with an election cycle on the horizon. We sincerely hope that individuals recognize the significant opportunities ahead of them. Let's have a great session.