Hi all,

Markets rose again for another week with the S&P breaking through the 5000-mark setting yet another new high. The Nasdaq also set a high not seen since October 2021. Even the small-cap index joined the party this week with a significant gain.

Some of the excitement was due to the revised CPI data showing inflation is coming down even more than initially reported.

NVDA reported more bullish AI news and most of the tech giants all enjoyed good gains on Friday to close out the week. More interesting earnings coming next week.  

There is no reason to bet against this market right now. There is just too much optimism. Mid-caps could be a good place to park some money as they have not had a big move yet (MIDU is a risky way to play this).

Recap Video

Watch the recap on YouTube

Sectors in Play Last Week

• Technology and Consumer Discretionary were the biggest gainers this week.
• Consumer Staples and Utilities sectors were the biggest losers on the week.

Key Levels for this Week

• DOW (38,672) – support 38,000 and resistance 38,800
• QQQ (437) – support 420 and resistance 440
• SPY (501) – support 490 and resistance 510
• IWM (199) – support 190 and resistance 200

What to Watch for this Week

• Monday – 2:00 PM US Budget monthly
• Tuesday – 8:30 CPI data
• Wednesday – nothing of note
• Thursday –8:45 Jobless claims, retail sales, import price index the 9:30 capacity utilization and production the 10:00 Home builder confidence
• Friday – 8:30 PPI data, house starts, and permits. Then 10:00 Consumer sentiment.

Earnings this week

• Monday – MNDY pre then ANET post
• Tues – KO, SHOP, DDOG, BIOG pre then ABNB, UPST, HOOD, LYFT post
• Wed – SONY, CME pre then TTWO, CSCO, OXY post
• Thurs – CROX, DE, SO, YETI pre then DKNG, ROKU, AMAT, TTD, COIN, DASH post
• Friday – TRP pre

Tracking

• AAPL –$190 is resistance and $184 support – seems stuck around this level.
• AFRM – Response to earnings was negative. Watch to see if $40 holds up as support.
• AMD – Price narrowing into a pennant. Watch for break one way or the other.
• AXP – had earnings and still looks strong as it moved higher again this week. Could sell puts at $205 support.
• BA – Bought $240 and sold $260 to reduce the cost of trade. Monitoring.
• Ethereum – June 2024 expectation for some ETF approvals. Watch for a similar run-up in price in expectation of the news.
• GOOG – Negative after earnings release this week. Bounced back to fill one gap – watch for a retest of $149 area for a long trade.
• IBM – $180 is firm support. May look at selling puts at this level for next week.
• INTC - $42 looks like support. Could sell puts around that level.
• META – Blow out earnings report last week but was down on Friday despite other tech stocks rallying – look to sell some $480 calls and or $450 puts as a support area.
• NFLX – $580 looks like resistance.
• TSLA – Double bottom pattern bounce back. $198 could be the next level of resistance if it continues higher.

Positions

• GOOG – long some $145 calls expiring Friday – sold for a small gain.
• BA – long vertical call spread $240 x $260 expiring August.
• META – sold $475 calls – expired end of week worthless, kept premium.
• TSLA – long $180 puts – sold early in the week – flat trade.
• YANG – bought early in the week and exited throughout the week – no position now.

 

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