Last Week’s Market Recap

Hi all, 

As expected, the Fed paused on hiking rates at their June meeting. However, they also noted that two or more rate hikes could be in the cards depending on how the economy continues to respond to the past hikes. Investors and traders really ignored the somewhat hawkish statements and hit the buy button.

There were signs that the economy was cooling as both CPI and PPI numbers showed some deceleration year over year. In addition, jobless claims came in higher than expected on Thursday showing that the labor market is weakening a little.

The technology sector continues to be an investor favorite with AI-related stocks continuing to benefit from that “Hot Sector Mania” that I discuss in my Swing Trade books. China stocks also caught a bid with more stimulus coming from the Government on sagging economic activity. Cruise lines and airlines have also been doing well as the rally broadens and consumers are spending on travel.

Big events next week will be Fed Powell speaking to the House Committee on Wednesday and the Senate on Thursday.  Some housing data will also come out this week with home builder’s stocks all performing well over the last couple of weeks.

Bottomline, we continue to be in an uptrend and the market breadth is improving.

Recap Video:

Sectors in Play Last Week:

• Technology and Consumer Cyclical sectors were the biggest gainers for the week.
• Energy was the only loser.

Key Levels for this Week:

• DOW (34,299 now) – support level 33,800 and resistance is at 34,500
• QQQ (367) – support level 350 and resistance is at 380
• SPY (439) – support level 420 and resistance is at 450
• IWM (186) – support level 180 and resistance is at 190
 
What to Watch for this Week:

• Monday market holiday
• Tuesday 8:30 Housing starts
• Wednesday 10:00 Fed Powell testifies to House
• Thursday 8:30 – Jobless claims and 10:00 Fed Powell testifies to Senate
• Friday 8:30 – S&P flash Services and Manufacturing PMI

View the Economic Calendar on Trading Terminal

Earnings this week:

• Tuesday: FDX amc
• Wedsday: WGO bmo and KBH amc
• Thursday:  ACN, DRI bmo
• Friday KMX

View the Earnings Calendar on Trading Terminal

Tracking:
- AAPL –$185 still looks toppy. $175 likely area of support. Maybe rangebound for a while to consolidate gains but the trend is still higher.
- AI – still holding some and likely still going higher.
- AMZN – $127.5 is resistance now. Consolidating and might break out of this pennant.
- GOOG –$130 is resistance. May need to consolidate here after moving higher.
- KRE – range bound – watch for a breakout of $45 or a breakdown of $42.5
- NFLX – $450 is now resistance. Very extended after this run-up.
- NVDA - $400 is support. Dips will likely keep getting bought due to AI excitement. Looking to sell puts again next week.
- PERI – nice move higher – trimmed at $34 and $35 - still holding some.
- SDGR – long on BBT member suggestion. Another AI play.
- TSLA –Watch for continued support (buying) on pullbacks. $240 is a support area.
- YINN – Could be a good breakout trade above $44.5.

Positions:

FOM on TSX - this is a small-cap mining company. I like the drill results they are getting and the management team is solid. Highly speculative at $3.00. Took some profits over $4.10.
AI – long
AMZN – sold.
PERI – long $32.
SDGR – long $41.8
NVDA – short $405 puts – expired worthless on Friday, kept premium.

Note: These are investments I am in or watching however, they may not be suitable for all investors. The author of this email is NOT an investment advisory service, a registered investment advisor, or a broker-dealer and I do NOT undertake to advise clients or recipients of this email on which securities they should buy or sell for themselves. This email is provided for information purposes only and traders should always consult with their licensed BIDO financial advisors and tax advisors to determine the suitability of any investment.