Hi all,

It was a week that started a little rocky with fear of rates high for longer. However, everyone was waiting for the NVDA earnings Wed. evening and they did not disappoint the bulls with strong earnings and projected growth.

That sent the SPY and Dow to all-time new highs before pulling back a little on Friday to close out the week.

The markets still feel a little toppy after this big run and the blow-off top Friday after NVDA earnings. I still do not see the risk of a big correction but we may be entering a consolidation phase at these levels.

PCE price index data on Thursday morning will likely be the big catalyst event for the week. This is the Feds favored inflation gauge. It will be interesting to see if it reflects the same outcome we saw in CPI data showing inflation is still a concern.

Recap Video

Watch the recap on YouTube

Sectors in Play Last Week

• Consumer Staples and Basic Materials were the biggest gainers this week.
• Energy and Real Estate sectors were the smallest gainers on the week.

Key Levels for this Week

• DOW (39,132) – support 38,000 and resistance 39,300
• QQQ (437) – support 421 and resistance 440
• SPY (508) – support 493 and resistance 510
• IWM (200) – support 192 and resistance 205

What to Watch for this Week

• Monday – 10:00 New Home sales
• Tuesday – 8:30 Durable goods orders, 10:00 Consumer confidence 
• Wednesday – 8:30 GDP revisions and wholesale and retail inventories
• Thursday –8:30 Jobless claims and PCE price index, 9:45 Chicago Business barometer
• Friday – 9:45 PMI US manufacturing, 10:00 ISM manufacturing and Construction spending and Consumer sentiment.

Earnings this week

• Monday – LI, DPZ pre: U, ZM, WDAY post
• Tues – NCLH, LOW, AZN pre; DVN, FSLR, CAVA post
• Wed – BIDU, NVAX, AAP, TJX pre; MARA, SNOW, CRM, AI, AMC post
• Thurs –BBY pre; ZS, SOUN, FSR post
• Friday – PLUG, FUBO pre

Tracking

• AAPL – looking very weak – back below $180 and 200 daily SMA more downside looks possible.
• AFRM – price is breaking down as well. Teetering on the edge of losing $36 with more downside possible from there.
• AMD – rangebound $164 to $184 is support and resistance.
• BA – Short the August $260 calls. Comfortable short the calls here.
• ETHX.b  long Ethereum with this TSE etf as per trading plan. Still holding some of the position for more potential gains.
• GOOG – range between $140 to $150.
• INTC – did not catch a bid on NVDA news like some other tech stocks. $42 is support and $45 looks like strong resistance – potential to sell calls at that level.
• META –looks strong. $460 support and $495 resistance for now.
• MIDU – looking like it might be starting to break out. Next big test will be $49.
• NFLX – $580 looks like resistance. Shorted calls $590 on Friday for a nice day trade as the market sold off.
• ROKU – bottoming action after huge sell-off. Sold $62 puts expiring this Friday for a bounce trade.
• SMCI - $800 potential support but very volatile.
• TSLA – Volatility getting less, $190 support and $200 resistance.

Positions

• BA – out of the vertical call spread $240 x $260 expiring August. Sold calls for a loss, still holding short $260 call position.
• NFLX – sold $590 calls Friday and kept premium.
• ROKU – sold short $62 puts
• MIDU – long again.
• ETHX.b on TSX (Toronto Stock Exchange) – some profits taken but still long for more potential gains.

 

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.