Hi all,

It was a good week for the market bulls. The reported CPI data was a little lower than expected which brought back some optimism that the Fed may continue its rate-cutting cycle. 

Investors were also encouraged by a raft of good earnings put up by many of the financial institutions. With inflation still running significantly above the 2% Fed target and the economy continuing to show strength, I am not so sure the Fed is going to be in a hurry to cut rates.

Next week will be a shortened trading week with Monday’s MLK holiday which is also the inauguration day for Trump. It is reported he will follow up with about 100 executive orders ushering in some significant changes. Concerns remain that some of these initiatives will be inflationary – watch the bond yields, they will tell you what the market thinks.

Cheers. 

Brian

 

Recap Video

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Sectors in Play Last Week

• Financials and Basic Materials were the sectors up the most this week.
• Healthcare was the only sector in the red this week.

Key Levels for this Week

• DOW (43,487) – support 42,000 and resistance 44,000
• QQQ (522)– support 500 and resistance 532
• SPY (598) – support 575 and resistance 607
• IWM (225) – support 214 and resistance 227

Economic Reports this Week

• Monday – MLK holiday – inauguration – markets closed.
• Tuesday – nada
• Wednesday – 10:00 US Economic Indicators
• Thursday – 8:30 Jobless Claims
• Friday – 9:45 S&P manufacturing and services PMI; 10:00 Consumer Sentiment

Notable Earnings this week

• Monday – holiday
• Tues – NFLX, UAL post
• Wed – PG, JNJ, ABT and post KMI, AA
• Thurs – UNP, AAL pre and CSX, ISRG post
• Friday – AXP, VZ pre

Positions and Trades Last Week

• KMI – long play on natural gas from 2 weeks ago watchlist. Still long but took some profits last week. Earnings this week.
• TD – long for a while, finally back in the green and took some profits.
• X – long from last week’s watchlist. Took some profits, still long some.

Tracking for Potential Trades

• COST – it looks like it has put in a higher low on the pullback and may start to move higher. High-price stock could be a good option play.
• XLP – COST is a big component of this ETF. Also, it looks like it has bottomed on a support level and is ready to move up.
• IWR – mid-cap ETF. It will benefit from lower rates and a strong US economy.
• TSLA – near resistance at $430. Watch for a break or drop from here.

 

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.