Hi all,

More volatility this week with most indexes finishing slightly down except for the QQQ which continues to outperform primarily based on a few of the larger capitalized names. CPI data came out Wednesday and was pretty much in line however, PPI number on Thursday was weaker than expected. PPI usually leads CPI so based on this relationship; one could expect inflation to continue to drop.

Jobless claims showed an unexpected increase on Thursday and Consumer sentiment was also weaker than expected on Friday. All these data points added to fears that we could be heading for a recession.

Let’s not forget about the debt ceiling issue which is still unresolved but will probably get fixed before things get too out of hand. All the issues discussed above will likely keep us range bound for the most part with maybe a bit of a bias to the downside for most stocks.

 

Key levels:

 

• DOW (33,300 now) – support level 33,000 and resistance is at 34,000
• QQQ (325) – support level 315 and resistance is at 330
• SPY (412) – support level 400 and resistance is at 420
• IWM (173) – support level 170 and resistance is at 180

 

Recap Video:

 

Watch the recap on YouTube

 

Positions:

 

• WLLW on TSX all out.
• 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. Took some profits over $4.10.

 

What to Watch for this Week:

 

• Monday 8:30AM – Empire State manufacturing
• Tuesday 8:30AM – Retail sales and a number of Fed speakers
• Wednesday 8:30AM – Building permits
• Thursday 8:30AM – Jobless claims and 10:00AM Leading economic indicators
• Friday 11:00AM – Powell and Bernanke on a panel

View the Economic Calendar on Trading Terminal

 

Sectors in Play Last Week:

 

• Communication Services sector was the biggest gainers for the week.
• Energy was the biggest loser again.

 

Earnings this week:

 

• Monday - RYAAY, NU
• Tuesday - HD, SE, BIDU, VOD
• Wednesday - TJX, TGT, CSCO, TTWO
• Thursday - WMT, BABA, BEKE, DECK,AMAT, ROST
• Friday - DE, FL

View the Earnings Calendar on Trading Terminal

 

Tracking:

 

• AAPL – Positive response after earnings report Thursday. $175 is a level worth watching if it tops out there. Still a possible call sale at that level or $180.
• ABNB – Dropped hard on earnings. Could be overdone now and $105 to $100 will likely be some support for a long or put sale.
• DIS - Also dropped hard after earnings report. $90 should be a support level to watch for put sale or long.
• GOOG - Mentioned last week to watch for breakout. Big move Friday. Need a pullback on Monday to consider getting in now. $120 area should offer some resistance.
• LVS - Tried to break out higher but failed. $58.5 level looks like support now.
• NFLX – Rejection around $350 level and looks like $330 for support.
• NVDA – Back near recent high of $290 and just churning at this level.
• PYPL – Really extended to the downside and due for a bounce here around $60.
• TSLA – Resistance at $177 as I mentioned before. $160 is near term support. Churn possible in this range.
• XRT – Lots of retailers reporting this week. If guidance is weak this ETF will sink