Hi all, 

The markets turned around this week and booked their biggest weekly gains in 2023. Bad economic news was good news for the markets as the jobs report numbers were weaker than expected which lead traders and investors to think the Fed may be done raising rates. Treasury interest rates dropped significantly and bond prices rose again on hopes the Fed may be at the end of their rate increases.

There were likely a lot of traders with short positions after we lost key levels of support on some indexes last week. This no doubt resulted in a short squeeze which contributed to the strong rally we saw into the end of the week.

The next question is when does bad economic data start becoming bad news again? We may get a bit of consolidation early in the coming week but seasonally we could be setting up for an end of year Santa rally.

Recap Video: 

https://youtu.be/FoXNFNSixhk

Sectors in Play Last Week:

• Real Estate and Consumer Discretionary were the biggest gainers this week.
• Energy gained the least amount on the week.

Key Levels for this Week:

• DOW (35,061) – support 33,000 and resistance 34,500
• QQQ (368) – support 340 and resistance 370
• SPY (435) – support 410 and resistance 440
• IWM (174) – support 162 and resistance 180 

What to Watch for this Week:

• Monday – 2:00 Federal Reserve loan survey
• Tuesday – 8:30 US trade deficit and 3:00 Consumer credit
• Wednesday – 10:00 wholesale inventories
• Thursday - 8:30 Jobless claims, and 2:00 Fed chair Powell on a panel discussion
• Friday – Veterans Day - trading day as per usual

Earnings this week:

• Monday – DISH, BNTX pre and NXPI VRTX post
• Tues – UBER, KKR, DDOG pre and UPST, GILD, OXY, DVN post
• Wed – RBLX, UA, PSNY, TRP, BIIB pre and DIS, AMC, TWLO, AFRM post
• Thurs – AZN, SONY pre and TTD, U, PLUG, ILMN, HOLX post
• Friday – nada

Tracking:

• AAPL – In the middle of no-man’s land - $170 support and $180 resistance.
• AMD – Ripped higher after earnings. Looks extended to upside now with $170 resistance if it gets close to there.
• AMZN – Ripped higher but buyers look exhausted here. $140 is resistance for now.
• GDX and GLD – pulled back to support and reentered Friday. $30 is big resistance on GDX.
• META – Regained $300 support. $320 resistance.
• NVDA – Back up and above an area of resistance - $470 will be next area of significant resistance.
• ORCL – Under radar AI play. $110 next area of resistance.
• TSLA – $200 support and $230 resistance.

Sector Watch

• XLY – maybe overbought now - $162 area of resistance.

Positions:

• HGU.TO – Toronto Stock Exchange long gold miners – similar to GDX. Re-entered.
• META – Once again sold some weekly $275 puts and $317.5 calls– expired worthless and kept premium.
• CAT- sold $225 puts – expired worthless and kept premium.
• TSLA – sold $210 calls – covered some for profit and covered rest for a loss.

 

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 advisors and tax advisors to determine the suitability of any investment.