October 24, 2023

Markets:

Stock futures rose Tuesday as investors focused on a fresh slate of earnings reports, and traders monitored the latest moves in Treasury yields.

Alphabet and Microsoft are among companies posting results after the market closes.

Wall Street is coming off a mixed session as investors continue to watch the U.S. 10-year Treasury yield, which rose above the 5% mark before falling that level. Rising yields have raised concerns about the state of the broader economy and pressured the stock market in recent weeks. On Tuesday, the benchmark rate was up about 1 basis point at 4.848%.

South Korea’s producer price index climbed 1.3% year-on-year in September, a faster pace than the 1% gain seen in August.

This was the second straight month of increase in the PPI, after it decreased for 12 straight months from July 2022 to June and remained in contraction territory until July.

Portfolio:

We embark on the new trading session with existing positions in TSLL, PATH, and AX. The market is showing great vitality, with numerous stocks poised for potential breakouts if the current price action persists. As we mentioned last Friday, we observed significant put options being sold in various sectors and stocks. This gave us strong indications that major institutions and traders were positioning themselves for an upward market move over the coming months.

Yesterday, we witnessed substantial volumes of bullish call options and another significant round of put options being sold in NVDA, a widely watched stock known for its price movements. The prevailing sentiment suggests that, despite the challenges, the path of least resistance remains upward. Many individuals have persistently attempted to short the market and predict market peaks throughout 2023. While we don't claim a guaranteed rally from this point, both technical analysis and the strategic positioning of substantial capital lead us to believe that the prevailing trend will likely continue upward to close out 2023.

Stay prepared for today's trading session as we have some significant earnings reports on the horizon this week!