Hi all,

This week, the QQQ posted an all-time high, and the Magnificent 7 stocks all performed strongly until Friday when we saw some profit-taking.

Meanwhile, the Dow posted a 3-week low, and the SPY reversed its upward trend this week as interest rates on 10-year Treasury bonds set a 2.5-week high. 

The CPI data released Wednesday buoyed investor expectation for another ¼ point rate cut by the Fed next week at the meeting on the 18th.  However, PPI data released Thursday showed an acceleration in inflation with the number being higher than expected. This illustrated that inflation is still a persistent issue and yields rose in response.

Markets feel toppy here after the big run-up we have had post-election and throughout 2024. Volume has been light and some market internals like advancing stocks versus declining stocks also are going bearish. I do not expect a sell-off but not looking for a lot more upside now either.

Cheers. 

Brian

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Sectors in Play Last Week

• Communication and Consumer Discretionary were the biggest gainers this week.
• Healthcare and Utilities were the worst-performing sectors this week.

Key Levels for this Week

• DOW (43,828) – support 44,000 and resistance 45,000
• QQQ (530.5) – support 515 and resistance 530
• SPY (604) – support 600 and resistance 610
• IWM (223) – support 230 and resistance 245

What to Watch for this Week

• Monday – 9:45 S&P services and manufacturing PMI
• Tuesday – 8:30 Retail Sales; 9:45 Industrial Production and Capacity; 10:00 Home Builder Confidence
• Wednesday – 8:30 Building Permits; 2:00 Fed rate decision then 2:30 Powell speaks.
• Thursday – 8:30 Jobless Claims; 10:00 Leading Economic Indicators
• Friday – 8:30 PCE data; 10:00 Consumer Sentiment

Earnings this week

• Monday – nada
• Tues – nada
• Wed – BIRK, GIS pre, and MU post
• Thurs – CAN, DRI pre and NKE, FDX, BB post
• Friday – CCL pre

Positions and Trades Last Week

• BA – got long – first target is $180
• TD – long – will continue to sell calls to collect premium.

Tracking for Potential Trades

• ACHR – looks ready to move back higher after pullback
• AVGO – big gap up – wait another day or two for top and potential to go short call options.
• LUNR – still on watch – holding $11.5 support.
• NVDA – topping pattern – watch for a break of $132.
• PYPL – potential to break out towards $100.

 

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.