Hi all,

As you are all likely aware, I have been travelling for the last 2 weeks in Vietnam and Cambodia. I just finished a 35 km bike ride through the ruins of Angkor Wat which was challenging in the 35C heat and high humidity but what an amazing experience. The engineer in my marvels at what these ancient people were able to build without the use of cranes or other heavy construction equipment. Also thought of the number of people that likely died or were seriously injured in this endeavour which are often forgotten.

Fast forward to last week, the markets were trading erratically based on the continued fallout from the SVB collapse and spill over concerns to other regional financials. Lots of effort going into preventing the next “Bank Run”. Both the two year and ten-year treasury yields dropped dramatically on bond market concerns about a potential coming recession or at least that the Fed could be close to finishing raising rates. Energy also got creamed which is the market telling you they believe there is an economic slowdown coming.

The bright spot in the market was the technology sector which investors and traders seemed to consider it as a safe haven trade compared to other sectors of the market including financials.

Next week, the big event will be the Fed announcement on the next rate hike which is still expected to be a 0.25% increase despite financial turmoil. Powell will speak after the announcement so expect some volatility then.

With the ongoing news feed rattling markets one minute and boosting them the next, it is a good time to either stay in a lot of cash or be prepared to be nibble with your swing trades. Technology sector seems to be the safest place to be. Congrats to Ardi and Andrew who did a great trade on GS, taking advantage of an overreaction on some of the stable financials. I have serious ROMO (regret on missing out) with that one.

With less-than-optimal internet I was able to join at the open Thursday and Friday to get in a few profitable trades on AMZN and AMD. Back on Tuesday and look forward to chatting with you all Wed morning at the open.

 

Key levels:

 

• DOW (31,860 now) down 0.15% – support level 31,500 and resistance is at 32,500
• QQQ (305) up 5.8% – support level 285 and resistance is at 310
• SPY (390) up 1.44% – support level 380 and resistance is at 405
• IWM (171) down 2.8%– support level 170 and resistance is at 178

 

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.
• TSLA – Short $60 put options March expired – kept premium./li>
• NUGT – long still on financial concerns.

 

What to Watch for this Week:

 

• Tuesday 2PM – Fed rate hike decision then Fed Powell speaks 2:30
• Thursday 8:30AM – Jobless claims
• Friday 8:30AM – Durable Goods orders

View the Economic Calendar on Trading Terminal

 

Sectors in Play Last Week:

 

• Communication Services and Tech were the hot sectors for the week.
• Energy and Financials were the biggest losing sectors.

 

Earnings this week:

 

• Monday - PDD, FL
• Tuesday - NKE, GME
• Wednesday - CHWY, KBH
• Thursday - CAN, GIS, DRI, NIO

View the Earnings Calendar on Trading Terminal

 

Tracking:

 

• AAPL – Right up at major resistance.
• BABA – Now trying to hold above $80.
• NVDA - Broke out higher through $240 – probably continues higher.
• NUGT - Gold still looking to push higher.
• TSLA - Trading in a range.
• META – Huge gap to fill down to $155 – more downside likely.
• TSLA – May pullback to $190 trendline next week.
• XLE – No love for energy now with concerns of recession.
• UNG – Pop up was short lived.