Hi all,

Markets had their worst week since September as concerns persist of a possible coming recession. On the other hand, the economy continues to look strong with unemployment staying low and wage growth high.  The PPI index was reported Friday (a measure of inflation at the wholesale level) and it came in two times higher than expected. This is not the kind of number the Fed wants to see as they continue to try to stamp down inflation by raising rates.

CPI will be reported Tuesday just before the Wed announcement on a rate hike. The CPI number will be a tell on inflation at the consumer level. Another strong CPI number could mean that the Fed that will continue to aggressively raise rates.

Most are expecting a 0.5% increase in December. Powell generally does not like to surprise the market so I think that is where we land.

These two events will likely be big market movers so expect a lot of volatility next week.

Key Levels

• DOW (33,476 now) – support level 33,000 and resistance is 34,600
• QQQ (282) – support level 275 and resistance is 295
• SPY (393) – support level 390 and resistance is 410
• IWM (179) – support level 176 and resistance is 190

Link to Video: 

Positions

• WLLW on TSX - long term hold. ($0.85)
• FOM on TSX - this is a small cap mining company. I like the drill results they are getting and management team is solid. Highly speculative at $3.00
• CCJ - Out remainder of position for now.
• RCI.B on TSX 
• FLEX - long
• GDX - sold $29.3
• BA - sold some, booked profits - likely sell remainder next week on pending big order news.

What to Watch for this Week

• Tues. CPI 8:30AM
• Wed. Fed - Rate hike announcement and Powell speaking 1PM
• Thursday - Retail sales numbers 8:30AM

Sectors in Play

• Utilities and Healthcare sectors were red, but lost the least amount.
• Energy and Communication Services were the biggest sector losers.

Earnings this Week

• Mon: ORCL, COUP, AMC
• Tues: PLAB, BMO, ABM,
• Wed: LEN, TRIP
• Thurs: JBL, ADBE
• Fri: ACN, DRI

Tracking

• BA - got long $157 on break out from a previous week's watch list.  I think it might sell off on big order news. Booking profits.
• CRM - $127 looks like support now - might be finally done going down - watch for double bottom retest to confirm bottom is in.
• FLEX - still holding long $21 on breakout from watchlist.
• GDX - initially broke out and got long $26.8. Sold - looking range bound now at 200 sma.
• TSLA - $170 looks like an area it wants to hold. Could sell some puts there.
• URA - Sold rest of CCJ for a loss - hate price action.
•  XLE - Pulled back to a key area of support $82.50. Could bounce here but it is still in a downtrend big picture.
• YETI - Watching for break above $46.