💰Reverse the losses💎

The equity market had a tough start as significant indices fell sharply only to reverse the losses in the later session. It was a mixed day given a dual concern of inflation and recession. In addition, the US Treasury market saw a yield fall, offering Nasdaq much-needed support. 

⏳Old names shine again🔦

As yield fell, growth stocks had some shine on them again. This is likely to be much needed after major shares had fallen hard during this winter. Yet as the earnings arrived, much was focused on what the management felt about the 2H earnings. 

🎙Earnings on highlight💵

As the parade of earnings swarms into the market, companies will have to show investors how they are coping with inflation and the insights of a shift in consumer spending given the still supply constraint we have seen. This means guidance is more essential and the commentary on their outlook of 2022. 

The general consensus is for S&P 500 to register a decent revenue growth of 10.4% compared to last year’s period. However, while the change is commendable, investors are wary that earnings per share growth are starting to wane as profit margins are expected to be weak. 

📠What’s on the menu today?📪

Today, we will receive some JOLTs Job openings data and ISM Non-Manufacturing PMI. Then the FOMC minutes will arrive, which is critical for us to understand if the Fed is increasingly more hawkish and aggressive in its monetary tightening. 

Pika Nat had taken some short positions today, which we have cut loss. It has been a difficult trading period, and we have tried to preserve our capital and cut loss more decisive when the tide turns. It can be demoralizing but following the trading plan is ever more critical.