Tough Crowd

Tuesday’s futures are modestly higher but, for trading purposes, little changed. Honestly, market sentiment at this moment is difficult to read. Yesterday’s trade saw jerky responses to word of increased oil supply coming from Saudi Arabia. By the end of the day, however, oil prices had recovered to the higher levels that prevailed before the headline hit the tape. Logic would lead a reader to consider that if a drone or missile attack could hobble the Saudi east-west pipeline once, then it could do so again. The momentary movement in oil did temporarily influence stocks, but all three major averages finished in the red.

We were surprised by the muted reaction to the SPCX mission, which by all accounts was a major success. The Starship deployed 26 Starlink satellites to low earth orbit, yet SPCX finished down about $3 to close at $145.47. Had the mission failed, the reaction likely would have been severe. It seems strange that there is no payoff for what has to be a foundational achievement for a private company. Yes, there is plenty of IPO lockup overhang on the horizon, but that fact was known before the launch and must have been priced-in already. On the margin and in the near term, the successful mission should have been a plus.

Successful trades will be stock specific today rather than sector based. Keep an eye on our trading board for setups as they emerge throughout the day.