Hi all,

It was another shortened trading week for the markets. There were no significant economic or earnings events. However, stocks sold off with Santa being a no-show for a rally that often happens between Xmas and New Year's.

Longer-term treasury bond yields remained above the 4.5% level which market makers and investors are watching as an important level. The higher yields go, the more attractive it becomes for investors as a place to invest money safely and get a good return. Questions remain on tariffs or no tariffs, immigration deportations, and other potential inflationary policies that may be enacted by the new administration.

Next week will be another shortened trading week in honor of Jimmy Carter’s passing. Markets will be closed on Thursday, January 9th. Markets may have signaled a short-term bottom with Friday’s rally. The first week or two in January are traditionally good for markets with 401k money flowing into investments.

Cheers. 

Brian

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Sectors in Play Last Week

• Energy and Utilities were the sectors up the most this week.
• Consumer Discretionary and Materials were the worst-performing sectors this week.

Key Levels for this Week

• DOW (42,732) – support 42,170 and resistance 44,160
• QQQ (519)– support 506 and resistance 531
• SPY (592) – support 580 and resistance 602
• IWM (224) – support 218 and resistance 226

Economic Reports this Week

• Monday – 9:45 S&P PMI Services; 10:00 Factory Orders
• Tuesday – 8:30 US Deficit; 10:00 ISM Services and Job Openings
• Wednesday – 8:15 ADP Employment; 2:00 FOMC Dec Minutes; 3:00 Consumer Credit
• Thursday – 8:30 Jobless Claims; 10:00 Wholesale Inventories
• Friday – 8:30 Unemployment and Wages Reports; 10:00 Consumer Sentiment

Notable Earnings this week

• Tues – nada
• Wed – ACI pre and JEF post
• Thurs – KBH post
• Friday – STZ, DAL pre

Positions and Trades Last Week

• ADBE – still holding but below entry – may have to stop out if it drops lower
• AMD – from last week’s watchlist - long on Friday based on the double bottom pattern – using $125 options expiring next Friday.
• AVGO – sold half.
• BA – sold for good profit – looked toppy at $180 then bad news about the China boycott.
• IONQ – from last week’s watchlist - got a long Thursday on the ABCD pattern and a strong close. Took half off on Friday.
• KMI – long play on natural gas from 2 weeks ago watchlist. It's still long but it may take some profits here.
• TD – long – will continue to sell calls to collect premium.

Tracking for Potential Trades

• AVPT – potential long trade on this pullback.
• IONQ – is still strong and looks like it might break out higher.
• QTUM– ETF for quantum computing hot sector.
• TSLA – bounced back but watch for resistance at $418 and then $425 next week.
• X – Nippon Steel blocked but I think it is now oversold on that news. Potential long here at support.

 

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.