Hi all,

The indexes all ended positive on the week. Investors and traders were very happy with the latest CPI and PPI data which showed inflation was lower than expected. Treasury yields dropped in response to those lower numbers with the prospect of more rate hikes seeming less likely and even the possibility of some easing of rates by mid-2024.

Jobless claims also ticked up on the latest report which indicated some cooling in the labor market which the Fed is looking for as well in their inflation fight.

I still see a good chance for an end of year Santa rally. Likely scenario is that we go higher, especially in the tech sector and semiconductors sector but also watch the small caps which could continue to play catch up.

Recap Video 

Watch the recap on YouTube

Sectors in Play Last Week

• Technology was the biggest gainers this week.
• Energy was the biggest loser on the week.

Key Levels for this Week

• DOW (34,947) – support 34,000 and resistance 35,450
• QQQ (386) – support 377 and resistance 390 then 400
• SPY (451) – support 440 and resistance 457
• IWM (178) – support 170 and resistance 185

What to Watch for this Week

• Monday – 10:00 US leading economic indicators
• Tuesday – 10:00 Home Sales data and 2:00 Release of Fed meeting minutes
• Wednesday – 8:30 Jobless claims and Durable goods and 10:00 Consumer Sentiment
• Thursday - holiday
• Friday – 9:45 S&P Manufacturing and Services PMI

Earnings this week

• Monday – NUI pre and ZM post
• Tues – LOW, BIDU, BBY, DKS, KSS pre and NVDA, JWN, HPQ, ADSK post
• Wed – DE pre
• Thurs – Holiday FUTU
• Friday –nada

Tracking

• AAPL –At the $190 area which is resistance. $185 area now support.
• AMD – Still looks strong. Now resistance is at $122. Looks like it wants to go higher but watch out for a volatile sympathy move one way or the other after NVDA earnings release.
• AMZN – Continued strength. $140 is support now and maybe a place to sell puts.
• META – $328 looks like solid support and maybe looks like it is ready to continue higher. $350 next big area of resistance.
• NVDA – Breaking out and back near $500 prior resistance. Earnings on Tuesday after close with an 8% price swing expected in options market.
• TSLA – $210 support and $245 resistance. Could be range bound trading.
• URA – Breaking out – uranium etf has lots of fundamental support to go higher.

Sector Watch

• XLE – energy maybe finding a bottom at this level. $83 is support now.
• XLK – Breaking higher again this week - tech sector is the place to be.

Positions

• XOM – long $104 as a XLE play.
• CCJ and URA – long uranium.
• DIS – sold $91 calls – Sold some for good profit and sold rest for a small profit as it started to break higher. Example of why honoring your stops is important.
• TLT – short 85 puts expiring in January 2024

 

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.