Hi all,

The situation this week is pretty much the same as last week The technology sector and specifically the semi-conductors continued higher. NVDA reported earnings and guidance well beyond expectations. The hot sector is AI and NVDA is the so called “picks and shovels” of that business being the supplier of the hardware necessary for all other companies to use this technology. The “picks and shovels” is reference to the old gold rush days where very few miners struck it rich but the people selling the products needed for mining made out just fine.

On the flip side, inflation continues to run will above the 2% level the fed wants to see. The PCE price index came in a little higher than expected and the jobless claims were lower than expected showing the employment picture is still good for workers. After these latest economic numbers, a rate hike in June is starting to look more likely.

The debt ceiling drama continued to play out but it looks like a deal is likely and a lot of market participants are not too worried about it regardless.

Safety trade continues to be technology and anything related to AI.

 

Key levels:

 

• DOW (33,093 now) – support level 33,000 and resistance is at 34,000
• QQQ (348) – support level 330 and resistance is at 350 then 360
• SPY (420) – support level 410 and resistance is at 420
• IWM (176) – 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.
• ZION - long 24.6 still holding some.
• AI - Long.
• AMZN - Long

 

What to Watch for this Week:

 

• Monday – Holiday
• Tuesday 9:00AM – Schiller Home price Index and 10:00AM Consumer confidence
• Wednesday 8:15AM – ADP employment number
• Thursday 8:30AM – Jobless claims and 10:00AM ISM manufacturing and Construction spending
• Friday 8:30AM – Employment report and hourly wages.

View the Economic Calendar on Trading Terminal

 

Sectors in Play Last Week:

 

• Technology and Communication Services sector were the biggest gainers for the week again.
• Utilities and Energy were the biggest losers.

 

Earnings this week:

 

• Monday - Holiday
• Tuesday - HPQ, HPE, AMBA
• Wednesday - AAP, CPRI, CAE, CRWD, AI, CRM, CHWY, OKTA, JWN
• Thursday - DG, M, BILI, AVGO, LULU, MDB, CHPT, ZS, ASAN, DELL

View the Earnings Calendar on Trading Terminal

 

Tracking:

 

• AAPL – Now above $175 but looks toppy. Next area of resistance will be $180 but it may need more consolidation.
• AMAT – Broke out through $130 and now $140 is new resistance level.
• AI - Right near resistance at $33. AI stocks are hot so watch for a breakout higher.
• AMZN - Another AI play at $120 and has lots of room to run higher. $131 is 200-day sma for next level of resistance.
• EMXC - Emerging market etf broke out despite US dollar strength. May continue higher.
• GOOG – Broke higher on AI play, $125 to $130 area should be next level of resistance – here now.
• NFLX – $370 to $380 top of range on this news pop. There now and could run to $400 on more market strength.
• NVDA – Blew out earnings and guidance. AI is hot and NVDA is at the top of this sector.
• NKE – Down due to apparent consumer weakness. Could be getting close to a bottom at $105 – watch for that level to hold or $100 is next stop down.
• TSLA – Watch for continued strength through $200
• XRT – Bounced back Friday but overall weakness this week.
• ZION – Still holding some.