Hi all,

The week closed on a strong earnings report and comments from DELL saying their AI servers are in high demand. This sparked a continued rally in the semiconductors and AI-related names like NVDA and AMD. That sent the SPY and QQQ to all-time new highs for another week.

In contrast to the positive AI news, there was some weak economic data with factory orders dropping as well as a decline in consumer sentiment. This weak economic data improved the odds for a rate cut by the Fed by mid-summer according to the CME Fed watch tool.

The market continues to push higher with some broadening of buying and the small and mid-cap stocks joining the party.

Recap Video

Watch the recap on YouTube

Sectors in Play Last Week

• Technology and Consumer Discretionary were the biggest gainers this week.
• Communication Services and Healthcare sectors were the losers on the week.

Key Levels for this Week

• DOW (39,087) – support 38,000 and resistance 39,300
• QQQ (447) – support 430 and resistance 450
• SPY (513) – support 500 and resistance 520
• IWM (206) – support 200 and resistance 210

What to Watch for this Week

• Monday – nothing
• Tuesday – 10:00 Factory orders and ISM Services
• Wednesday – 8:15 ADP Employment, 10:00 Powell testifies to Congress and wholesale inventories
• Thursday –8:30 Jobless claims, 9:15 Powell testifying to Congress, 3:00 Consumer credit
• Friday – 8:30 wages, payrolls and unemployment data

Earnings this week

• Monday – GTLB post
• Tues – TGT, NIO pre; CRWD, ROST, CHPT post
• Wed – JD, CFB pre; post
• Thurs –PBR, KR pre; AVGO, COST, MRVL, MDB, DOCU post
• Friday – nada

Tracking

• AAPL – still looking very weak – back below $180 and 200 daily SMA more downside looks possible.
• ABNB – breaking out – potential long - $180 possible target. Sell puts and buy upside calls for a very bullish bet.
• AMD – breaking out again. Over $200 now on volume. 
• BA – Short the August $260 calls. $200 is an important support level – there now.
• ETHX.b  - long Ethereum with this TSE etf as per trading plan. Still holding some of the position for more potential gains.
• GOOG – at support $138.  Watch if it holds or breaks down here. ~$134 is the 200 daily SMA for the next support area.
• META – breaking out. I am long.
• MIDU – breaking out. I am long.
• NFLX – $580 looks like resistance. Shorted calls $590 on Friday for a nice day trade as the market sold off.
• ROKU –Sold $62 puts expiring last Friday for a bounce trade. Covered for a 60% profit on Thursday. May repeat this week if premiums are still good at the $60 level.
• TSLA –$208 resistance but it looks like it may go higher. Opportunity to sell puts if you think it is just stuck in a range. $190’s might be good.

Positions

• AAPL – short $185 calls – expired worthless kept premium.
• BA – short $260 call position.
• ROKU – sold short $62 puts – covered for a profit.
• META – long.
• MIDU – long.
• 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.