Hi all,

Fed chair Powell spent 2 days testifying in front of Congress. In summary, his message was:

• No sign of recession 
• Rates will stay where they are until we get more indication that inflation is going to stay down
• Possible rate cuts later this year.

The employment data showed mixed results. There were 275k jobs added in February compared to the 190k expected. The unemployment rate ticked up to 3.9% versus the expected rate of 3.7%.  January payroll results were revised lower. The glide path to a soft landing still looks good.

Friday saw a volatile session for some of the semiconductors. NVDA and AMD hit all-time highs in the morning before pulling back hard in the afternoon.  Tech was mixed as AAPL and GOOGL seemed to find a bottom with their price action and both ended higher on the day.

CPI and PPI data next week will keep the markets on edge.

Recap Video

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Sectors in Play Last Week

Utilities and Basic Materials were the biggest gainers this week.

Consumer Discretionary and Communication Services sectors were the losers of the week.

Key Levels for this Week

• DOW (38,723) – support 38,000 and resistance 39,300
• QQQ (439) – support 430 and resistance 448
• SPY (512) – support 505 and resistance 518
• IWM (207) – support 205 and resistance 210

What to Watch for this Week

• Monday – nothing
• Tuesday – 8:30 CPI data
• Wednesday – nothing
• Thursday –8:30 Jobless claims, PPI data
• Friday – 8:30 Empire State data; 9:15 Industrial Production and, 10:00 Consumer sentiment (prelim)

Earnings this week

• Monday – ORCL, ASAN post
• Tues – KSS pre
• Wed – DLTR pre
• Thurs –DKS, DG pre; ADBE post
• Friday – nada

Tracking

• AAPL – maybe finding support around $170. Potential to sell puts there but it might be a short-term bounce.
• ABNB – still breaking out – long and short $160 puts expired Friday – kept premium.
• AMD – broke out this week but big pullback Friday. Bearish reversal candle for now.  $200 then $190 levels of support.
• BA – Short the August $260 calls. Stock is having issues – wheels are coming off literally and figuratively.
• ETHX.b  - still long Ethereum with this TSE etf as per trading plan. Still holding some of the position but will consider taking more profits next week.
• GDX – gold broke out last week – China banks buying as well as other central banks. Crypto and gold are hot. 
• GOOG – found support $130.  Sold $130 puts that expired Friday kept premium. Still in a downtrend but there could be support here.
• IONQ – big insider buying with a director associated with Broadcom. Might take a flyer at $10.
• META – breaking out. I was long–sold Wednesday – felt toppy.
• MIDU – breaking out. I am still long.
• NFLX – Second time shorted calls $620 on Friday for nice day trade as the market sold off. Similar trade last week. Friday options expire that night so there is no event risk when holding overnight.
• ROKU –Second week sold $62 puts expired last Friday. Kept premium. Will look to do it again next week.
• TSLA – lost support $180. Might be heading to $165 for the next area of support.

Positions

• AAPL – short $180 calls this week – expired worthless kept premium.
• BA – short $260 call position.
• ROKU – sold short $62 puts – expired worthless again.
• META – All out for now.
• MIDU – long.
• ETHX.b on TSX (Toronto Stock Exchange) – some profits taken but still long for more potential gains. The run-up as been great - I might take more off next week.
• TGT – short $175 calls expiring next Friday.

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.