February 11, 2025

Markets:

U.S. stock futures traded lower Tuesday as investors looked ahead to testimony from Federal Reserve Chairman Jerome Powell, while they fret over a possible escalation in global trade tensions.

The central bank leader first will address the Senate Banking Committee on Tuesday, followed by an appearance the next day in front of the House Financial Services Committee. Both events will start at 10 a.m. ET and will begin with prepared remarks from Powell.

Powell’s testimony comes at a volatile time in Washington with President Donald Trump favoring tariffs against U.S. trading partners and with mixed messages coming from the administration on its approach to the Fed. Trump on Monday signed new tariffs on all steel and aluminum imports to the U.S. The European Union responded by saying it would retaliate with levies of its own if the U.S. tacks on tariffs against products from the country bloc.

Shortly after Trump took office, he said he would demand lower interest rates. However, Treasury Secretary Scott Bessent said last week that the White House would not be pressuring the Fed to cut its benchmark borrowing rate and instead will be looking for the 10-year Treasury yield to fall as the administration institutes deregulation and spending cuts to control inflation.

Later this week, investors will receive fresh inflation data in the form of the latest consumer price index report due out Wednesday, while the producer price index will go out on Thursday.

Portfolio:

We enter the new session with setups in BBAI, APPS, SOXL, ASAN, and S.  We continue to build and the hated runway continues to build to the euphoric level that will take this market into chase mode for many.  Here is what we are watching today and planning for.  CPI, PPI, and Powell's testimony. Lot of noise along with Trumps retaliatory tariffs going in next 2 days.  Watch the headlines but remember do not chase the day to day move off of this.  The overall trend is all that matters. One thing I can definitely say look at QQQ, patterns like that break higher usually. Huge risk reward there. We've been pointing to the Q's and it is getting close to massive breakout.  But no reason to front run it here, just stay patient and allow this to work.  TSLA, another example of discipline where price is moving against right now.  This one will squeeze very soon and run.  The setups is brewing and they are just bringing max pain here for now.  NVDA massive upside call volume coming in and now they are coming for the 190's – 200's!  

Really interested to see where we land technically by Friday after we receive the data to come and Powell's testimony.  The data is more important to us and the reaction over Powell but never know what he will say that can trigger a move.

Be ready today.