Hi all,

 

There were some economic signs that inflation is continuing to cool off this week. The much-watched PCE price index fell below a key level of 4% but it is still well above the 2% target set by the Fed. 

 

Historically September is not a great month for equity performance and that proved to be the case. Treasury yields continued higher this week which was a concern for the bulls.

 

The price of oil continues to be strong and the auto workers strike was expanded again. As I am writing this, there seems to be hope for a 45-day funding bill that will prevent a full government shutdown. We will see if it passes.

 

I expect another volatile week ahead but maybe we have put in a short-term bottom on this pullback. 

 

Recap Video: 

Watch the recap on YouTube

 

Sectors in Play Last Week:

• Energy sector was up the biggest for the week.
• Utilities and Consumer Staples were the biggest losers by far on the week.

 

Key Levels for this Week:

• DOW (33,507) – support 33,000 and resistance 34,500
• QQQ (358) – support 351 and resistance 370
• SPY (427) – support 422 and resistance 436
• IWM (177) – support 175 and resistance 181

 

What to Watch for this Week:

• Monday – 9:45 S&P Manufacturing PMI and 10:00 ISM Manufacturing and Construction spending
• Tuesday – 10:00 Job openings
• Wednesday – 8:15 ADP employment and 9:45 S&P Services PMI 
• Thursday - 8:30 Jobless claims and Trade deficit
• Friday – 8:30 Employment reports with hourly wages

 

View the Economic Calendar on Trading Terminal

 

Earnings this week:

• Monday - nada
• Tues – MKC pre
• Wed – TLRY pre
• Thurs - STZ, CAG pre and LEVI post
• Friday - nada

 

View the Earnings Calendar on Trading Terminal

 

Tracking:

- AAPL – Apple dipped below the $170 level but buyers came in and bought so it did not close below that level. This is an area that should be watched…if it looks to close below there, then more downside likely.

- AMZN – Selling could be done for now - support are looks like $122.50 and resistance $132.50.

- CCJ – Topping at this point but could be a buy at $38 on a pullback.

- DELL – Really holding up well. Range bound area $67.5 to $72.5. Could sell some calls there next week or watch for a break of that range. Options unfortunately are not very liquid.

- INTC – Really over sold – may be a good long entry around $32 if it gets there.

- LAC – $16.30 is absolute support. They announced splitting into two separate companies with separate shares. Popped on news but sold off.

- META - $312.5 is resistance and $290 is support. Sold puts last week at $290 and collected premium. May do same trade again next week.

- NVDA – Now it is at support $400. $440 looks like resistance. Levels to watch.

- RIVN – V reversal from $20. Now at major resistance – watch for a break out.

- SCHW – This is looking weak and I am betting it breaks down more. Sold $56 calls and used money to buy $53 puts. Break above $56 and I am out.

- TSLA – Probably reports sales numbers for Sept. Wait to see what the reaction is.

 

Sector Watch

- XLE – sold off with rest of market but oil price is still strong. 

 

Positions:

CCJ – long $39.5 – looking for a high of $41 retest. Sold rest and watching for $38 to re-enter.

SCHW – Sold $56 calls and used money to buy $53 puts. Break above $56 and I am out.

 

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.