Hi all,

The markets took a tumble on Friday due to a few factors including weakening consumer, weaker than expected economic data, the Fed minutes indicating they want to see more progress on the inflation fight before cutting rates further, ongoing concerns about tariffs to be applied with potential retaliation, and a warning from Walmart regarding earnings in 2025. 

Large numbers of layoffs and firings in the government also add to investor nervousness and concerns about what it might mean for unemployment. Consumers may be feeling more reluctant to spend given the level of uncertainty with all the changes happening which can lead to a recession.

Expect another volatile week with more earnings releases but the season is winding down.  The much-anticipated NVDA earnings report is on deck Wednesday with some other notables as well; CRM, DELL, HIMS, and HD. Buckle up – I think next week is going to be a wild ride.

Cheers,

Brian

 

Recap Video

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Sectors in Play Last Week

• Staples and Utilities were the sectors that gained this week.
• Communication Services and Discretionary were the sectors down the most this week.

Key Levels for this Week

• DOW (43,428) – support 43,000 and resistance 44,600
• QQQ (526)– support 515 and resistance 540
• SPY (600) – support 595 and resistance 610
• IWM (218) – support 215 and resistance 228

Economic Reports this Week

• Monday – Nothing of note
• Tuesday – 9:00 Home Price Index; 10:00 Consumer Confidence.
• Wednesday – 10:00 New Home Sales
• Thursday – 8:30 Jobless Claims, Durable Goods Orders and GDP; 10:00 Pending Home Sales
• Friday – 8:30 PCE data; 9:45 Business Barometer

Notable Earnings this week

• Monday – DPZ pre and HIMS, RIOT post
• Tues – HD pre and CAVA post
• Wed – ETSY, GRMN pre and NVDA (4:20), CRM (4:00) SNOW, AI post
• Thurs – NCLH, VST pre and DELL, SOUN (4:10) post
• Friday – FUBO pre

Positions and Trades Last Week

• GDX – Still holding a small residual position. Will monitor for additional selling next week and stop out if that happens.
• KMI –Still hanging on if it stays above $26.
• NVDA – long over the long weekend on breakout – was looking for a gap fill at $142 from last week. Target hit on Tuesday and sold.
• TD – long for a while, took some profits and still long some but earnings next week. Will sell before mid-week.

Tracking for Potential Trades

• AMZN – at major area of support now $216. Further selling could take it to $200.
• META – lost the support of 20 and 50 SMA last week. Could be heading lower to $660.
• PLTR – Big gap to fill if we continue to sell off - $85 would be support.
• RDDT – Tried a long last week but quickly stopped out as the selling continued. $159 is the next area of support if the selling continues.
• UBER – Pullback to the $75 area could be a buy.

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.