Hi all,

Markets rallied hard this week on Fed Chair Powell’s comments Wednesday where he indicated that there could be several rate cuts in 2024.  Some other Fed members tried to walk back those dovish comments in the following days with not a lot of impact.

The indexes all ended positive for the 7th week in a row with the DOW making an all-time high. QQQ and SPY making new closing highs for the year. 

Investors and traders still seem to believe that a soft landing is still in the cards as inflation continues to cool while the jobs market is getting weaker but still on solid footing for the moment. Just noting lots of layoff news recently for several companies.

Bias for the markets is still to the upside with the Santa rally looking like it will continue this coming week. The VIX remains very low indicating no fear of a pending sell-off. 

Happy Holidays everyone.

Recap Video: 

Watch the recap on YouTube

Sectors in Play Last Week:
Real Estate and Basic Materials were the biggest gainers this week.
Communication Services and Utilities were the weakest sectors of the week.

Key Levels for this Week

• DOW (37,305) – support 36,600 and resistance 37,500
• QQQ (405) – support 390 and resistance 408
• SPY (469) – support 456 and resistance 473 then 490
• IWM (197) – support 190 and resistance 200

What to Watch for this Week

• Monday – 10:00 Home builder confidence
• Tuesday – 8:30 Housing starts and permits
• Wednesday – 10:00 Existing home sales
• Thursday –8:30 Jobless claims, GDP Q3 revisions, and 10:00 Leading economic indicators
• Friday – 8:30 PCE data and 10:00 Consumer sentiment

Earnings this week

• Monday – nada
• Tues – ACN pre and FDX post
• Wed – GIS and MU post
• Thurs – CCL, PAYX, KMX and NKE post
• Friday – nada

Tracking

• AAPL – support is now $193 and resistance is $200. News of another China ban on Friday after market close. Potential to sell puts or calls.
• AMD – looking extended with resistance at $140.
• AMZN - Ascending triangle pattern break out – watch $150 for a continuation move higher.
• GDX – back long – watching next week for a move higher or stop out.META – broke out through $325 and now $340 is resistance. Potential to sell calls and/or puts.
• ORCL – holding $100 support, potential to sell puts.
• TNA – small caps are breaking out and likely heading higher.
• TLT – Extended after a big run-up. Potential to sell some upside $102 calls.
• TSLA – Breaking out with next resistance at $260. The trend looks higher.

Positions

• HGU on TSX similar to GDX – back long on pullback.
• TLT – short 85 puts expiring in January 2024.
• TNA – long small caps ETF, sold most on a monster rally.

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