Hi all,

Financial concerns seemed to settle down this week with no more “bank runs” in the news. Credit has reportedly tightened which may help the Fed in their fight against inflation. There was also a bit of encouraging news with the PCE price index report on Friday that showed inflation dropped at a slightly lower rate than was expected.

All this news got the bulls excited and the buying really ramped up as we closed out the first quarter of 2023. Many are still calling for a pullback to last October lows but for now, it still seems the trend is your friend and that trend is up.

Next week is a short trading week with a holiday on Friday. The following week of April 10th, we kick off another earnings season. A lot of poor earnings reports and bad guidance may take the wind out of this market but for now, volatility is very low and buyers are liking the companies with solid earnings and balance sheets such as NVDA and AAPL.

 

Key levels:

 

• DOW (33,274 now) – support level 31,800 and resistance is at 33,800
• QQQ (321) – support level 307 and resistance is at 330
• SPY (409) – support level 380 and resistance is at 410
• IWM (178) – support level 170 and resistance is at 195

 

Recap Video:

 

Watch the recap on YouTube

 

 

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.
• FNH – Long at $17./li>
• TLT – Short $103 April 6 puts.
• TQQQ – Long going into next week.

 

What to Watch for this Week:

 

• Monday 9:45AM - Manufacturing PMI and 10:00AM – ISM manufacturing
• Wednesday 9:45AM - Services PMI and 10:00AM – ISM services
• Thursday 8:30AM – Jobless claims
• Friday – Unemployment reports but the markets will be closed.
• More “Fed speakers” throughout the week at various events

View the Economic Calendar on Trading Terminal

 

Sectors in Play Last Week:

 

• Energy and Consumer Discretionary sectors were the biggest gainers for the week.
• Communications Services gained the least.

 

Earnings this week:

 

• Monday - SAIC
• Tuesday - AYI, NG
• Wednesday - CAG
• Thursday - STZ, LW, LEVI

View the Earnings Calendar on Trading Terminal

 

Tracking:

 

• AAPL – Pushed through resistance - $170 could be next area of R to watch. Opportunity to sell downside puts.
• AMZN – Through $100 resistance. Opportunity to sell downside puts.
• FNH - Buyout proposed by TD at $25 – trading in $16 level on regulator concerns but I think selling is overdone and has found a bottom. Gapped up Monday - got in at $17.
• NVDA - $280 is resistance but if QQQ moves higher – this could break higher again. Better to sell downside puts.
• SQ - Sold $60 puts bought stock at $63 and sold $68 calls. All out on Friday, kept premium on puts sold stock at $69 and covered $68 calls for a small loss.
• TLSA – Broke out Friday. $200 could now be support.
• UNG – Pop up was short lived maybe a double bottom again.