Hi all,

It was a volatile week for the markets due to data that came out showing inflation is not continuing to trend lower. Both the CPI reported on Tuesday and the PPI reported on Friday showed an unexpected increase in prices.

These new numbers, put into further question the potential for rate cuts in the near term as the economy and jobs market continues to show strength while inflation is still sticky.

Earning season continued with a lot of mixed results. Some companies released good numbers resulting in strong moves higher while others missed or gave poor forward-looking guidance causing them to sell off.

NVDA will report on Feb 21 and this is, without a doubt, the big one everyone is going to be watching. Expectations are high as the stock continues to have buyers based on the AI business.   

Some topping action in the markets this week. I do not see the risk of a big correction but we may consolidate at these levels.

Recap Video

Watch the recap on YouTube

Sectors in Play Last Week

 

• Energy and Basic Materials were the biggest gainers this week.
• Communication Services and Technology sectors were the biggest losers on the week.

Key Levels for this Week

• DOW (38,627) – support 38,000 and resistance 38,900
• QQQ (431) – support 425 and resistance 439
• SPY (500) – support 490 and resistance 503
• IWM (201) – support 193 and resistance 205

What to Watch for this Week

• Monday – Holiday
• Tuesday – 10:00 US leading economic indicators
• Wednesday – 2:00 Minutes of January FOMC
• Thursday –8:30 Jobless claims, 9:45 S&P Flash PMIs, Existing Home Sales, and 5 Fed speakers starting at 10:00
• Friday – noting of note.

Earnings this week

• Monday – Holiday
• Tues – WMT, HD pre; PANW, SEDG post
• Wed – ADI, VRT pre; NVDA (4:20), RIVN, ETSY, LCID, BROS post
• Thurs – MRNA, NEM, NKLA pre; SQ, CVNA, MELI, INTU, BKNG, EOG, NU post
• Friday – WBD pre

Tracking

• AAPL – looks very weak – a break of $180 looks possible.
• AFRM – price is breaking down as well. A bounce back up to near $40 could be a good short with a tight stop.
• AMD – $165 to $180 is support and resistance.
• BA – Sold the $240 August calls for loss and still short the $260 calls. Comfortable short the calls here.
• ETHX.b  got long Ethereum on Monday with this TSE ETF as per trading plan last week.  Sold half position on Thursday for a nice profit.
• GOOG – looking weak - $137.50 looks like a possible downside target.
• META –look to sell some $490 calls and or $460 puts as a support area.
• NFLX – $580 looks like resistance.
• TSLA – Possible gap fill on this bounce to $210.

Positions

• BA – out of the vertical call spread $240 x $260 expiring August. Sold calls for a loss, still holding short $260 call position.
• ETHX.b on TSX (Toronto Stock Exchange) – long Monday as per last week’s letter. Sold half Thursday – first target hit.

 

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.