Hi all,

Fed Chair Powell sent the markets into a bit of a tailspin this week. The Fed delivered the widely expected 0.25% rate cut but in the press conference, Powell suggested that they did not see the need for any further cuts anytime soon. Maybe 2 more but in the back half of the year.

Investors and traders were disappointed with the news of a lower potential for cuts and all the indexes sold off hard after the press conference. 

The PCE data release Friday came to the market’s rescue with a lower-than-expected inflation number. The indexes were able to make back some of the Wednesday losses, but the markets all finished down on the week. Small caps took the biggest hit as interest rates on treasury bonds continued to climb higher. 

Next week will be a shortened, low-volume week but watch for continued volatility.

Cheers. 

Brian

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Sectors in Play Last Week

• Technology and Utilities were down the least this week.
• Energy and Real Estate are the worst-performing sectors this week.

Key Levels for this Week

• DOW (42,840) – support 42,000 and resistance 44,000
• QQQ (519)– support 515 and resistance 533
• SPY (591) – support 81 and resistance 605
• IWM (221) – support 218 and resistance 235

What to Watch for this Week

• Monday – 10:00 Consumer Confidence
• Tuesday – 8:30 Durable Goods Orders and Home Sales
• Wednesday – Holiday
• Thursday – 8:30 Jobless Claims
• Friday – 8:30 Retail and Wholesale Inventories

Earnings this week

• Monday – nada
• Tues – nada
• Wed – holiday
• Thurs – nada
• Friday – nada

Positions and Trades Last Week

• AVGO – big gap up the previous week –shorted call options as per last week’s watchlist.
• BA – still long – the target is $185 the $200
• TD – long – will continue to sell calls to collect premium.

Tracking for Potential Trades

• ACHR – watching Monday for a breakout through $10.
• ADBE – potential for a long with sell-off very extended and at a significant support level.
• IONQ - looks like it might break out higher.
• NVDA – came back after losing support at $132. Maybe a move higher if it can break through $136.
• UNG – natural gas looks like it might break out higher.
• KMI – play on natural gas.

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.