Hi all,

It was a shortened trading week but the markets managed to continue to rally without any economic news. 

The main indexes all ended positive for the 9th week in a row with the DOW making another all-time high. Only the IWM finished down.

Investors and traders are still anticipating several rate cuts in 2024 starting in March and continuing into May.

It feels like there is some buyer exhaustion after the big run-up in November and December. I would not be surprised to see some churn and even a pullback after New Year’s euphoria wears off.  Selloffs happened at the beginning of 2020 and 2022 after a big run-up – maybe we get a repeat?

Recap Video

Watch the recap on YouTube

Sectors in Play Last Week

• Healthcare and Consumer Staples were the biggest gainers this week.
• The Energy sector gained the least in the week.

Key Levels for this Week

• DOW (37,690) – support 36,200 and resistance 38,000
• QQQ (409.5) – support 395 and resistance 410
• SPY (475) – support 456 and resistance 475 then 490
• IWM (200) – support 190 and resistance 204

What to Watch for this Week

• Monday – Holiday
• Tuesday – 9:45 Manufacturing PMI and 10:00 Construction Spending
• Wednesday – 10:00 Job openings and ISM Manufacturing then 2:00 Fed meeting minutes.
• Thursday – 8:15 ADP Employment and 8:30 Jobless claims and, 9:45 US services PMI
• Friday – 8:30 Employment and Wage data and 10:00 ISM Services and Factory Orders

Earnings this week

• Monday – Holiday
• Thurs – WBA, CAG pre
• Friday – STZ pre

Tracking

• AAPL – retested support $192 on Friday. The next support level is around $189.
• AMD – resistance now at $150. Watch for support of $143.5 for gap fill—potential to sell $140 puts.
• AMZN – Rolling over here – may be heading back to $150 and then $147.5 if that does not hold.
• GOOG – toppy around $143 and support at $139. Possible to sell $143 upside calls
• META - $360 looks like resistance for now Potential to sell upside calls.
• TNA – took the rest of the trade off. I suspect it will pull back in January.
• TLT – Short some $102 calls expiring Jan 19.
• TSLA – Could not hold above the key level of $260. Now back at support of $248. Watch for a loss of that level.

Positions

• HGU on TSX similar to GDX – sold again and all out.
• TERN – for small-cap biotech play.
• TLT – short 85 puts expiring in January 2024.
• TLT – short $102 calls expiring in January 2024.
• TNA – was a long small-caps ETF, and sold the remainder.

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