Hi all,

The markets all ended down on the week as more evidence points to a continued strong economy and jobs market. Neel Kashkari sent the markets lower Thursday on his view that there was no need for any rate cuts in 2024. 

Friday, we got job market data showing a job number of 300K which was almost 100K more than what was expected. Wages rose by 0.35%.  Markets shrugged off that news and rallied back. With all this data and Fed comments, the likelihood of a rate cut in June is seeming less and less likely. 

The most important economic data points for next week will be CPI and PPI data on Wednesday and Thursday respectively which will give us another read on the inflation fight.  

Lastly, earnings season kicks off again with DAL starting on Wednesday, followed by a number of the financials JPM, C, and WFC on Friday. Let’s see if the earnings and profits can keep us up at these relative highs in the market.

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Sectors in Play Last Week

• Energy and Comm Services were the biggest gainers this week.
• Healthcare and Real Estate sectors were the biggest losing sectors on the week.

Key Levels for this Week

• DOW (38,904) – support 38,500 and resistance 39,500
• QQQ (440) – support 435 and resistance 448
• SPY (518) – support 510 and resistance 525
• IWM (205) – support 200 and resistance 210

What to Watch for this Week

• Monday – nothing
• Tuesday – nothing
• Wednesday – 8:30 CPI data; 10:00 Wholesale Inventories; 2:00 FOMC meeting minutes
• Thursday –8:30 Jobless claims; PPI data
• Friday – 8:30 Import Price Index; 10:00 Consumer Sentiment

Earnings this week

• Monday – nothing
• Tues – ACI pre
• Wed – DAL pre
• Thurs – STZ, KMX, FAST pre
• Friday – JPM, WFC, C, BLK pre

Positions and Trades Last Week

• Long gold, silver, and oil stocks.
• AMZN – long.
• BA – short $260 call position. 
• GOOG – long.
• ROKU – sold short $62 puts – stopped out Thursday for loss.
• META – long.
• AMZN – long.
• MIDU – long.
• NVDA – long.
• NVDA – Option trade Friday, sold $895 calls and $860 puts (0DTE) – expired worthless and kept premiums.

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. It 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.
• 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. 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.