September 27, 2023

Markets:

U.S. stock futures traded higher Wednesday, as Wall Street tried to recover from steep losses seen in the previous session, boosted by a dip in Treasury yields.

The benchmark 10-year Treasury yield fell, pulling back from its highest levels since 2007. The 2-year Treasury yield also fell from a recent multiyear high.

Rising rates have recently put pressure on stocks amid fears that the Federal Reserve could keep monetary policy tighter for longer than expected. On Tuesday, the S&P 500 fell below the key 4,300 for the first time since June. The Dow also posted its biggest one-day loss since March, dropping more than 300 points to close below its 200-day moving average for the first time since May. These losses came after new home sales and consumer confidence data missed economists’ estimates.

Durable goods, which include such items as airplanes, appliances and computers, rose 0.2% on the month, reversing a 5.6% slide in July and better than the Dow Jones consensus for a decline of 0.5%.

The U.S. dollar index was near session highs at 106.349 in early trading Wednesday. That’s the highest level of the year going back to Nov. 30, 2022 when the index reached a high of 107.195.

Portfolio:

We hold positions in SOXL, KOS, AX, CHWY, CLF, and ATEN. as we enter the trading session.  Portfolio looks great, especailly in the current market volatility.  Market volatility has persisted in recent sessions, causing fluctuations in trade premiums for both long and short positions. As previously mentioned earlier this month, our strategy advises against chasing day-to-day market moves. Instead, we encourage planning for potential developments in the October and November time frame.

While we continue to identify significant opportunities, it's important to anticipate market swings until the end of September. It's worth noting once again that historically, the last 10 days of September have been a challenging period for traders and the markets alike. However, as this period concludes, we transition into Q4 and a new market cycle.

Stay prepared for updates and the possibility of a new trade alert. Patience remains key in this environment while we prepare for the monster period ahead.