Hi all,

We finished the week on a bit of a high note as NFLX report very strong subscriber growth, GOOG announced 12,000 layoffs and Fed Governor Waller seemed OK with a February rate hike of 0.25%. Traders and investors liked the news headlines at least for the Friday session. However, many Fed Governors remain hawkish and feel the inflation fight is far from over. Next week there will be no Fed comments as we head into the quiet period before the rate announcement in the follow week.

This week we will get lots of high-profile companies across a number of sectors reporting earnings. These companies include TSLA, MSFT, BA, INTC, V, MA and JNJ. Forward guidance will be notable as the CEOs give us a read on how they see the economy performing in the next 6 months or more. No doubt this will have some impact on how the indexes overall perform.

Money is flowing into bitcoin and gold as global debt issues are getting more focus. I think these will continue to perform well. Oil and energy stocks are also interesting as the Chinese economy starts to ramp up and global energy consumption increases which should drive prices higher.

Volatility remains low which is an indication that maybe a low has already been made….I think there is a real fear out there of missing a market bottom so right now it seems to be a buy the dip mentality.

 

Key levels:

 

• DOW (33,375 now) – support level 33,000 and resistance is 34,000
• QQQ (283) – support level 265 and resistance is 290
• SPY (396) – support level 380 and resistance is 410
• IWM (185) – support level 175 and resistance is 187

 

Recap Video:

 

https://youtu.be/i89crGzeuBg

 

Positions:

 

• WLLW on Toronto Stock Exchange (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
• FLEX - long
• ATVI - long $75.7 still trying to sell some calls
• XLE - long $87
• YINN – long China $66.4
• TSLA – short $60 put options
• GDX – long gold

 

What to Watch for this Week:

 

• Tuesday 9:45AM – PMI numbers
• Thursday 8:30AM – Jobless claims
• Friday 8:30AM - PCE price index

View the Economic Calendar on Trading Terminal

 

Sectors in Play Last Week:

 

• Communication and Technology were the strongest sectors for the week.
• Industrials and Utility sectors were the largest losing sectors.

 

Earnings this week:

 

• Monday - BKR, and LOGI
• Tuesday - JNJ, VZ, UNP, MSFT and TXN
• Wednesday - ASML, BA, T, TSLA, IBM and CSX
• Thursday - MA, BX, V and INTC
• Friday - AXP and CL

View the Earnings Calendar on Trading Terminal

 

Tracking:

 

• ATVI - long stock position and trying to selling $90 covered calls based on MSFT trying to buy them at $95 in summer 2023. FTC is suing to block the deal but I think their case is weak.
• FLEX – uptrend still holding long $21 on breakout from watch list.
• GDX - uptrend.
• TSLA – uptrend to possible $150 level.
• XLE – Sector looking good with China reopen story.
• YINN – China reopen story.
• UNG – still weak - maybe support around $9.75.
• NFLX – potential to sell weekly upside calls if we get topping action Monday.