Hi all,

The markets continued to grind higher this week despite news that could have been considered negative as President-elect Trump said he would place 25% tariffs on all products coming from Mexico and Canada and a further 10% on China. He said he was not happy with the illegal immigration and drugs coming through the borders which he wants addressed. However, this could also create more inflation as it would likely drive up the cost of many goods.

Meanwhile, PCE data was released, showing that inflation is not completely tamed, which may cause the Fed to rethink further rate cuts in the near future. The CME watch tool now has a rate cut in December at about 66%.

This coming week we will get a lot of employment data which is one of the Fed’s primary focuses. To date, the labor market has been resilient. December is traditionally a good month for the markets, so the bias is more upside from here. 

Next week a lot of us are in Colombia – will catch up with you from there.

Cheers. 

Brian

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Sectors in Play Last Week

• Consumer Discretionary and Healthcare were the big gainers this week.
• Energy and Tech were the worst-performing sectors this week.

Key Levels for this Week

• DOW (44,911) – support 43,300 and resistance 45,000
• QQQ (510) – support 495 and resistance 515
• SPY (603) – support 584 and resistance 615
• IWM (242) – support 226 and resistance 245

What to Watch for this Week

• Monday – 10:00 ISM Manufacturing and Construction Spending
• Tuesday – 10:00 Job Openings
• Wednesday – 8:15 ADP Employment; ISM Services and Factory Orders; 2:00 Fed beige book
• Thursday – 8:30 Jobless Claims and Trade Deficit
• Friday – 8:30 Employment reports and Wages; 10:00 Consumer Sentiment

Earnings this week

• Monday – post ZS
• Tues – PG, BNS pre and CRM, MRVL post
• Wed – DLTR, CWHY, FL pre and post
• Thurs – KR, DG pre and LULU, ULTA post
• Friday – nada

Positions and Trades Last Week

• ARKG – long from last week’s watchlist
• HUT – long Bitcoin trade
• IBIT – long from watchlist.
• XLU – long from watchlist.
• XLV – long from watchlist.
• TD – long – sold calls to collect premium – expired and on Friday. Will sell calls again but TD reports earnings this week.
• TNA – ETF long IWM. Trimmed some at high last week.

Tracking for Potential Trades

• AMZN – potential to break higher from here $208
• BABA – Oversold. Still watching for a bottom.
• DAVE – looks ready to break higher – missed getting long. My bad.
• NVDA – watch for a move back up next week after a pullback.
• SLV – Silver looks like it is bottoming after the sell-off and holding the $27.5 level.

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.