Hi all,

Overall, it was another strong week with the SPY having its best first quarter since 2019.  The tech-heavy QQQ did close down on the week as buyers are looking fatigued and maybe taking some money out of the tech sector and moving elsewhere. 

Mid-caps and small caps are finding buyers as well as many of the commodities such as oil, gold, and cocoa which are now fetching over $10,000 per tonne.

The most important economic data point of the week was released Friday when the markets were closed.  The Fed preferred inflation gauge numbers were pretty much as expected and showed a continued slow decline. 

A lot of market watchers continue to expect three rate cuts later in the year but the Fed remains data-dependent so that is not a given for now.

The upward trend in the markets continues.

Recap Video 

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Sectors in Play Last Week

• Energy and Utilities were the biggest gainers this week.
• The technology and Consumer Discretionary sector was the only losing sector on the week.

Key Levels for this Week

• DOW (39,807) – support 39,200 and resistance 40,000
• QQQ (444) – support 430 and resistance 450
• SPY (523) – support 510 and resistance 525
• IWM (210) – support 200 and resistance 210 then 220

What to Watch for this Week

• Monday – 9:45 Manufacturing PMI; 10:00 ISM Manufacturing and Construction Spending
• Tuesday – 10:00 Factory Orders and Job Openings
• Wednesday – 8:15 ADP Employment; 9:45 Services PMI; 10:00 ISM Services
• Thursday –8:30 Jobless claims and GDP revision5; 9:46 Chicago Business Barometer PMIs; 10:00 Consumer Sentiment
• Friday – 8:30 US Payroll, Unemployment, and Wage data

Earnings this Week

• Tues – PAYX pre; PLAY post
• Wed – LEVI, NG, BB post

Positions and Trades Last Week

• BA – short $260 call position. Also sold $182.5 puts this week and kept the premium as per last week’s plan.
• GOOG – long.
• ROKU – sold short $62 puts – expired worthless again.
• META – long.
• MIDU – long.
• NVDA – long.
• NVDA – Sold $910 calls Thursday (0DTE) – expired worthless.

Tracking for Potential Trades

• ADBE - $500 looks like support and $520 resistance. Watch for a break on those levels or sell puts or calls at those levels if we churn in this area.
• BA –$185 is now a support area. Potential to sell puts there again this week.
• ETHX.b - watching to re-enter on a pullback. Seems to be holding the $17 area for support.
• LULU – bottom could be in at $385. Potential to sell puts there this week.
• MU – Top now it $125 – potential to sell calls above that level.
• ROKU –Potential to sell $62 puts. Will look to do it again next week.
• TGT – Stock is breaking out through $175.
• XLE – Energy is breaking out and looks like it is going higher.

 

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 financial and tax advisors to determine the suitability of any investment.