Hi all,

This is getting somewhat repetitive, but the DOW and S&P finished the week at new highs yet again. The DOW notched its 40th record high for the year, while the S&P hit its 47th record high. The IWM is back close to its all-time high, while QQQ continues to lag a little.

This week's results were driven by a combination of strong earnings, a continued rotation of money into all areas of the market, a good retail sales report, and increased expectations by traders and investors that the Fed will deliver a soft landing. The odds for a rate cut at the November meeting are still very high at 90%.

The tech sector saw a little more volatility as ASML disappointed the markets with a weak outlook for sales while TSM came out with an opposite view, posting excellent earnings and a more positive outlook on the space.

Not a lot of economic events this week but we have a few interesting companies reporting such as TSLA and AMZN. The trend is still to the upside, and I feel like earnings will generally continue to be good as companies continue to report through this season which will support this market.

Recap Video

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Sectors in Play Last Week

• Utilities and Real Estate were big gainers this week.
• Energy was the only big losing sector for the week.

Key Levels for this Week

• DOW (43,276) – support 42,300 and resistance 43,400
• QQQ (494) – support 480 and resistance 500
• SPY (585) – support 565 and resistance 585
• IWM (226) – support 215 and resistance 228

What to Watch for this Week

• Monday – 10:00 US Leading Economic Indicators
• Tuesday – nada
• Wednesday – 10:00 Existing Home sales; 2:00 Fed Beige book
• Thursday –8:30 Jobless claims; 9:45 S&P services and manufacturing PMI
• Friday – 8:30 Durable Goods Orders; 10:00 Consumer Confidence

Earnings this week

• Monday – SAPO, NUE post
• Tues – GE, TXN, VZ pre and ENPH post
• Wed – KO pre and TSLA, TMUS, IBM, LRCX post
• Thurs – AMZN, HON, UPS pre and DECK, COF post
• Friday – CL pre

Positions and Trades Last Week

• ABCL – from watchlist – now long on break out – looking for +$3
• CMG – Long. Looking for a break higher to over $60.
• CRWD – Long under just $300 and got a nice breakout. Holding rest for a move higher.
• OKLO – In last week and almost stopped out…thank goodness that did not happen. Sold most of the position now on the rocket ride-up.
• TD – long now and selling upside calls to collect premium while it likely chops sideways for a while.
• UVXY – out.
• XLU – long from last week’s bonus watchlist.

Tracking for Potential Trades

• AMZN – could break $190 but watch out for earnings this coming week. Might be best to stay away until after their report.
• BIVI – dangerous low float….got in a little on Friday and will be watching Monday to see if we get a “DRUG” like move.
• TSM – looks toppy here so maybe a bearish call vertical for a further pullback to fill the gap.
• XLF – Another ETF that looks extended after all the earnings reports.

 

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.