The markets had a down week in the face of continued strength in the jobs market and as more traders and investors seem to be reluctantly accepting more rate hikes are coming. The two-year treasury popped up over 5% this week while the ten-year finished the week above 4%. Odds for a rate hike at the July FOMC meeting are now over 90%.
Wednesday we will get the CPI data released which will likely move the markets one way or the other. Thursday is the kick off the next earnings season and we will start to get a look at how earnings are holding up. As always, some of the big financials will lead things off starting Friday.
I think we get more choppy price action this week with maybe a trend developing after CPI data comes out Wednesday.
Consumer Cyclical and Utilities sectors were the biggest gainers for the week.
Healthcare and Basic Materials biggest losers.
Key Levels for this Week: DOW (33,375 now) – support level 33,400 and resistance is at 34,500
QQQ (366) – support level 355 and resistance is at 372
SPY (438) – support level 430 and resistance is at 445
IWM (185) – support level 180 and resistance is at 190
What to Watch for this Week: Monday – 10:00 and 11:00 Fed speakers and 3:00pm Consumer Credit.
Tuesday – not much
Wednesday - 8:30 June CPI data
Thursday - 8:30 Jobless claims and PPI data
Friday - 8:30 Import price index and 10:00 Consumer Sentiment
Earnings this week: Wed ACI pre
Thurs CAG, CTAS, DAL, PEP pre
Friday BLK, C, JPM, WFC, UNH pre
Tracking: - AA - had a good day Friday, reporting soon with $32.5 support.
- AAPL –Stalling at +$190 after reaching 3 trillion valuation. Maybe stuck in a range under $200 to consolidate gains but continued support will likely remain around $189.
- AI – Looking rangebound but reluctant to take a bet one way or the other.
- AMZN – Resistance $131 and support $127. Rangebound for now. Could sell puts and/or calls.
- BABA – Move about $92.5 indicates a breakout up to $95.
- GOOG - Struggling to move higher. $126 is resistance.
- KRE – still short $42 calls but covered some this week. Will be out before Friday bank earnings start.
- NFLX – $450 is still resistance. $410 big area of support.
- NVDA - Still like $410 for support and $440 resistance. Still stuck in a trading range now after big run up.
- RIVN – big run up and looking extended. Likely still has more upside but pullbacks to consolidate from here are possible.
- SDGR – $50 level is resistance now. Watch for a breakout from there.
- TSLA - $260 are support areas and $284 resistance.
- X – bounced back Friday….watch for a breakout above $25
- XLE – energy sector had a good day Friday. Watch for follow through next week.
$82 is resistance
Positions: AAPL – long $200 calls expired worthless and lost $120 dollars
KRE –short $42 Aug calls but already covered some.
RIVN – short $22 puts expire end of next week.
TSLA – shorted $240 puts this week – kept premium.
X – long $23.6 – sold early in week.
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