Market Recap

Dow: +254.47…
Nasdaq: +270.36… S&P: +50.43…

The stock market ended Tuesday on a firmly higher note with the Nasdaq (+2.0%) pacing a daylong advance while the S&P 500 (+1.1%) and Dow (+0.7%) recorded slimmer gains.

Today’s rally lifted the S&P 500 back above its 200-day moving average (4473) after that area offered slight resistance on Monday while the Nasdaq reclaimed its 50-day moving average (13831).

Ten sectors finished the day in positive territory with consumer discretionary (+2.5%) and communication services (+2.0%) holding the lead throughout the day.

Rates ripping. 10-year treasury.

Since the 1970s, we’ve had 8 tightening cycles. All but 2 have ended in recessions. So you’ve got 25% odds that the Fed pulls off this ‘soft landing. The Fed couldn’t pull off a band-aid without a gurney and a paramedic.

Today the Dallas Fed said that recession is unavoidable without Russian oil.

Anyway, I am in agreement on the recession, just as I knew that inflation would never be transitory.  Trust the White House and the Fed at your peril.

Seeing some decent movement from the weekend watchlist names. One that hasn’t popped yet is OSTK which I added today as a new long.

I’m watching this triangle right now. A move out of it could start a run.

I also added BE which is right at a breakout spot.

P&L here

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