Markets are continuing to accelerate lower this morning with ES futures down 85+ points and NQ Futures down 350+ points at their lows at around 7:30am ET. Gold is down $20 at $1,861.70, and Crude Oil is down $2.75 at $107.00. Yields are rising again, with the 10 Year Note sitting at 3.16%.

We got a nice execution to exit our ABNB put spread trade Friday afternoon as markets accelerated lower into the close. ABNB was trading at $155 pre-market on Thursday morning, and closed out the week at about $135, and this was after posting decent earnings last Tuesday. The movement in a stock like ABNB is indicative of this whole market right now, growth stocks getting punished the most, even the growth stocks that are beating on earnings and having record quarters. Nothing is immune from this market repricing, as everything is getting sold, although some more than others.

On Thursday, I sent out a note to subscribers trying to add some context of where we have been and where we still are: "I would say it is not too late to preserve some capital here, especially when it comes to longer term retirement investing". On Thursday when I sent this note out the S&P was at 4,166. It is currently 120 points lower at 4,148. Don't be complacent here. If you are still considering selling to lighten up exposure or free up some cash, I would say it is still not too late. Yes, there is the chance the market bounces and you have an opportunity cost, but there is also a very real chance the ES hits 3800-3500 in the near-medium term.

Some of this is worth repeating, so here you go: "We started 2019 off at about 2,500 in the S&P. We started 2020 off at about 3,200 in the S&P. And we started off 2021 at about 3,750. In that context, this market is still near the top and there is a very real chance the next 6-12 months are a tough one as we battle inflation and a Fed that is on a hiking path that many have not seen in our lifetimes."

We get CPI numbers on Wednesday, which are expected to show a slight slowdown from the March numbers. The April CPI report is expected to show a decline in the annual pace of inflation to 8.1% from 8.5% in March. For core prices, which exclude food and energy, an expected drop to 6% from 6.5% is forecast. Markets are looking for inflation to have peaked and CPI prices to begin easing from the 8.5% number for March. Be aware that things could get much worse if inflation does not abate as expected as we come into the second half of the year.

Disney is out with their earnings out Wednesday after the close. Expectations are for Disney+ subscribers to grow by about 4.2 million for the company's fiscal second quarter. This would bring total subscribers to about 134.1 million. The market will be looking for adjusted earnings per share of $1.18 on revenue of $20.12 billion for its fiscal second quarter, with the parks expected to bring in $1.61 billion in operating profit on revenue of $6.1 billion. WMT has earnings May 17th.

Earnings on our radar this week:

Tuesday

Before the open: Hyatt Hotels (H), Peloton (PTON), Norwegian Cruise Line Holdings (NCLH), Planet Fitness (PLNT)

After the close: Roblox (RBLX), Occidental Petroleum (OXY), Coinbase (COIN), Rocket Cos. (RKT), Wynn Resorts (WYNN), Electronic Arts (EA)

Wednesday

After the close: Disney (DIS), Rivian Automotive (RIVN), Bumble (BMBL), Sonos Inc. (SONO), Beyond Meat (BYND),

Thursday

Before the open: Six Flags Entertainment (SIX)

After theclose: Affirm (AFRM)

Stay tuned for updates!

Long half position in WMT at $140.91. WMT is trading at $148.70. Stop is $125.31.

Long half position in DIS at $118.63. Disney is trading at $108.25. Stop is $98.45.

Long half position in MCD at $216.91. MCD is trading at $249.60. Stop is $189.50.

Bought a ABNB Debit Put Spread $140 - $131 for $1.75 and sold it Friday for $5 for a $3.25 or 185.71% profit.

Bought UBER at $31.50 and got stopped out at $26.24 for a $5.26 or 16.7% loss.