Morning Notes – 7/8/2022

Good Morning:

• We had another good day in the Trading Room yesterday, earning 16 S&P 500 Futures points in the first few hours of the day. While it is a personal decision, Day Trading continues to be preferable to swing trading with the current tape.
• Clearly, it is not easy to swing trade in this environment. Holding overnight can hold many surprises the next morning. We all have to sleep. right?
• In spite of the challenges, we managed to establish a 10% position in August SPY Monthly Calls a week ago today (7/1), when the futures were at 3748.50. 
• We brought the position up to 50% live in the Trading Room on the morning of 7/6 at 3816.25.
• Our target has been the WEM high at 3925 or so. As we discussed yesterday in the Trading Room and given the risks related to this morning’s Unemployment Report, we sold half the position yesterday afternoon at the top of the intraday wedge pattern when the futures were trading at 3910.
• We are holding the other half in hopes of reaching a bit closer to the target. We moved our stop on the remaining half up to 3858.50.
• The Employment Report was much stronger than expected this morning. Will this be more good news on Main Street is bad news on Wall Street?
• This is a hard needle to thread. It certainly allays some of the Recession narrative, but ensures another 0.75 Bps Fed rate hike at the end of the month.
• We will see how the market reacts.
• Meanwhile, here is today’s Trading Sandbox for Day Trader Subscribers: