Hi all,

We finished the week on another high note with TSLA shares making a 33% move on the week. In addition, some positive economic news helped the markets. Last quarter GDP was stronger than expected at 2.9% growth (2.6% expected) and the Personal Consumer Expenditure index was 4.4% year over year which showed inflation is slowing. Traders and investors cheered the news with the thought that the Fed may be on track to engineer a “soft-landing”.

Money is continuing to flowing into the riskier growth stocks. This is the fourth week in a row that the tech heavy QQQ finished up. Bitcoin was strong and even Cathy Wood’s ARKK fund preformed well.

My comment from last week deserves repeating “Volatility remains low which is an indication there is no fear of a big sell off coming. Traders shorting the market have been caught off-side and I believe the biggest fear out there right now is that many feel that have already missed a market bottom. Buy the dip mentality remains for now.

Having said that, we have run up a lot so it will be interesting to see the reaction of some of these high-profile stocks reporting this week. Has the good news already been priced in? We shall see.

 

Key levels:

 

• DOW (33,978 now) – support level 33,000 and resistance is 34,300
• QQQ (296) – support level 280 and resistance is 300
• SPY (406) – support level 385 and resistance is 410
• IWM (190) – support level 175 and resistance is 190

 

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
• FLEX - long
• ATVI - long $75.7
• XLE - long $87 – sold at $92.8 expected resistance there from previous high.
• YINN – long China $66.4 – sold most at 71.5
• TSLA – short $60 put options
• GDX – long gold – sold at $33 on concerns US $ will strengthen here.

 

What to Watch for this Week:

 

• Tuesday some home sales data
• Wednesday 2:00PM ET – Fed rate hike announcement and comments
• Friday 8:30AM - Non-Farm Payrolls

View the Economic Calendar on Trading Terminal

 

Sectors in Play Last Week:

 

• Consumer Discretionary was the strongest sector for the week.
• Energy was the largest losing sector.

 

Earnings this week:

 

• Monday - SOFI and NXPI
• Tuesday - XOM, MCD, UPS, CAT, AMD and SNAP
• Wednesday - WM, PTON, META, and TMUS
• Thursday - MRK, SHEL, BMY, AAPL, AMZN, QCOM, SBUX and F
• Friday - RGEN

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.
• META - reports Wednesday. Already had a big run up to the 200 sma daily. Good news may already be priced in.
• GDX – uptrend maybe running out of some steam – watch for strengthening dollar.
• TSLA – could challenge $200 next week.
• YINN – China re-open story still holding some.
• UNG – still weak - maybe support around $9.75 – may try another entry next week.