📈 The Markets Overnight

🌏 Asia: Down
🇪🇺 Europe: Down
🇺🇸 US Index Futures: Down, chopping sideways
🛢 Crude Oil: Down a lot
💵 Dollar: Up
🧐 Yields: Up
🔮 Crypto: Up

🌏 Major Global Catalysts

Inflation and the fear of higher rates for longer, returns.

💵 Economic Reports and Events Today

Consensus forecasts shown
8:30am Import Prices m/m -0.1% Change in the price of imported goods and services purchased domestically.
8:45am FOMC Member Bowman Speaks at the Tennessee Bankers Association, in Nashville.
10:00am CB Leading Index m/m -0.3% Combined reading of 10 economic indicators related to employment, new orders, consumer confidence, housing, stock market prices, credit trends, and interest rate spreads.
Close Monthly options expiration.
Monday North American markets are closed Monday for President’s Day in the US and Family Day in Canada.

📰 Selected Earnings Releases

Consensus Estimates shown
After Hours Today:
None

Pre-Market Tomorrow:
WMT Walmart EPS 1.510 Rev 159.62B
HD Home Depot EPS 3.270 Rev 35.98B
TECK Teck Resources EPS 0.920 Rev 2.56B

📉 Stocks In Play

DKNG DraftKings +8.47% on a revenue beat and raised guidance.
MRNA Moderna -5% on news their flu vaccine underperforms traditional vaccines.
SI Silvergate Capital +3.8% Recovering some yesterday's huge loss as crypto rallies.

🔮 Selected Analyst Ratings Changes

AMAT Applied Materials Needham Maintains Buy Raises Target to 135.00
APPS Digital Turbine Macquarie Downgrades to Neutral Targets 12.00
COTY Coty Citigroup Initiates Coverage at Neutral Targets 15.00
CRM Salesforce Citigroup Maintains Neutral Raises Target to 182.00
DASH DoorDash Mizuho Maintains Neutral Raises Target to 75.00
DASH DoorDash Needham Maintains Buy Raises Target to 84.00
DBX Dropbox Credit Suisse Reiterates Underperform Maintains Target at 20.00
DBX Dropbox Keybanc Maintains Overweight Lowers Target to 29.00
DKNG DraftKings Susquehanna Maintains Positive Raises Target to 26.00
DKNG DraftKings Needham Reiterates Buy Maintains Target at 20.00
MNST Monster Beverage JP Morgan Maintains Overweight Raises Target to 114.00
NVDA NVIDIA Keybanc Maintains Overweight Raises Target to 280.00
ROKU Roku B of A Securities Upgrades to Buy Raises Target to 85.00
TTD Trade Desk Citigroup Maintains Buy Raises Target to 76.00

💬 Commentary

The market experienced a significant downturn in response to yesterday's pre-market PPI report, which revealed an unexpected increase in producer inflation. Following an initial struggle, the bulls managed to regain most of the losses incurred. However, at 3:00 pm, Bullard, the Federal Reserve's most hawkish member, recommended a 50bps rate hike at the upcoming March FOMC meeting, leading to a rapid decline to a new low on the day. This outcome was far from ideal, given the recent recovery in the market.

As we begin today's trading session, we are witnessing another gap down open due to the critical SPY 408 support level being breached. Nevertheless, several support levels are still nearby before the situation turns alarming. These levels include last Friday's low at 405, the .382 Fib retracement at 402.50, and the critical 400 level. Our weekend video will analyze these levels and the probability of them holding in greater detail.

Expect increased volatility towards the end of the trading day due to monthly options expiration and the long weekend ahead, potentially resulting in significant market fluctuations.

Happy Trading and have an excellent long weekend everyone!

-KevinD

Join me in LIVE weekly trading sessions

I run a small Discord trading group where we strategize, give feedback on previous trades, and share even more in-depth briefings throughout the week.

Get your trade ideas analyzed by me personally and get new ideas from other traders in The Investor Community. You can join us by clicking this link here.

Was this email forwarded to you? Subscribe if you like it!

_{Disclaimer: Everything expressed in this newsletter is a personal opinion provided for educational value only. This is not financial advice. These are not instructions, suggestions, or directions as to how to handle your money. Please, always do your own due diligence.}