Hi all,

The markets moved higher again this week on continued optimism for a rate cut or cuts later in the year. PPI data released on Tuesday showed a tick up in inflation pressure but the CPI data which came out Wednesday showed the opposite with inflation continuing on a cooling trend.

This Wednesday will be very interesting. After the market closes, we will hear how NVDA has done over the last quarter and, more importantly, what they are guiding for earnings from now on. The AI hype has been a big factor in keeping a bid in this market. A miss (which is unlikely) will result in a sell off in a lot of the big technology names.

I remain bullish as we break out to new highs. Commodities are strong, Utilities have been on a tear with the hopes of lower rates and Staples are holding up well.

Recap Video

Watch the Recap on YouTube

Sectors in Play Last Week

• Technology and Real Estate were the biggest gaining sectors this week.
• Industrials was the only sector down slightly this week.

Key Levels for this Week

• DOW (40,004) – support 39,700 and resistance 40,300
• QQQ (452) – support 445 and resistance 465
• SPY (529) – support 525 and resistance 540
• IWM (208) – support 205 and resistance 210

What to Watch for this Week

• Monday – nothing except a few Fed speakers.
• Tuesday – more Fed speakers
• Wednesday – 10:00 Existing Home sales; 2:00 Release of May Fed minutes; NVDA reports after the close.
• Thursday –8:30 Jobless claims; 9:45 Flash PMI services and manufacturing PMI numbers; 10:00 New Home Sales
• Friday – 8:30 Durable goods orders; 10:00 Consumer sentiment.

Earnings this week

• Monday – LI at 3:00 PM the PANW, ZM post
• Tues – LOW, ZIM, M pre and TOL post
• Wed – TGT, TJX, PDD pre and NVDA, SNOW post
• Thurs – BJ pre and INTU, ROSS, DECK post
• Friday – nothing noteworthy

Positions and Trades Last Week

• Long gold stocks.
• AAPL – sold $185 calls May 17th – expired worthless and kept premium
• BA – short $260 call position. 
• BA – short $175 puts May 17th. Expired kept premium – will look at same trade next week.
• ETHH – long Ethereum with Toronto Stock Exchange ETF.
• GOOGL – long on break out.
• NFLX - Option trade Friday (0DTE), sold $630 calls expired worthless and kept premium.
• NVDA – long.
• NVDA – Option trade Friday (0DTE), sold $930 calls expired worthless and kept premium. Did this trade last a couple of weeks?
• URA – long.
• XLU – long still.

Tracking for Potential Trades

• BA- $175 still looks like support.
• DIS – support at $100 gap fill and potential to hold there.
• NFLX - $600 to $630 trading range now. Potential to sell calls or puts.
• TLT or long Bonds for continued drop in yields.

 

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.