Hi all,

 

As expected, this week the Fed chose to hold on further rate hikes. Then Fed chair Powell stepped to the mike and delivered a body blow to the bulls as he reiterated the fight on inflation is not over and more rate hikes could be coming. Chances of some significant rate cuts in 2024 seemed less likely; traders and investors did not like the news and pressed the sell button.

 

Historically September is not a great month for equity performance and that is proving to be the case once again.

 

The price of oil continues to be strong and the auto workers strike was expanded on Friday. It also looks like we could be headed for a government shutdown with no ongoing funding deal on-site.

 

At this point, it looks like we might be setting up for another volatile week ahead. 

 

Recap Video: 

Watch the recap on YouTube

 

 

Sectors in Play Last Week:

• Consumer staples sector was down the least for the week.
• Consumer discretionary and real estate were the biggest losers of the week.

Key Levels for this Week:

• DOW (33,964) – support 33,700 and resistance 35,000
• QQQ (358) – support 354 and resistance 380
• SPY (430) – support 420 and resistance 435
• IWM (177) – support 175 and resistance 185

 

What to Watch for this Week:

• Monday – nada
• Tuesday – 8:30 Home sales and 10:00 consumer confidence
• Wednesday – 8:30 Durable goods orders
• Thursday - 8:30 Jobless claims; GDP revision
• Friday – 8:30 PCE price index

View the Economic Calendar on Trading Terminal

 

Earnings this week:

• Monday - nada
• Tues - CTAS pre and COST post
• Wed - PAYX pre and MU post
• Thurs - ACN, KMX pre, and NKE post
• Friday - CCL pre

View the Earnings Calendar on Trading Terminal

 

Tracking:

- AAPL – Near support at $172 then $170 if it gets there for a long.

- AMZN – Really broke down – now support looks like $126.50.

- CCJ – Nice run-up, long on a pullback for a move higher to $41 again.

- DELL – Really held up well during the sell-off. Range bounds are $67.5 to $72.5. Could sell some calls there next week or watch for a break of that range.

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

- LAC – could be a good long around $17 for a splitting of the shares into two separate companies.

- META - $312.5 is resistance and $290 is support. May sell calls again there next week. Big support is around $290.

- NVDA – Now it is at support $400. Really oversold but could drop more if the market sell-off continues.

- ORCL – $107.5 is support again.

- TSLA – Sold off hard last week. Watch $240 for support.

 

Sector Watch

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

 

Positions:

AMZN – sold $140 puts and used the money to buy $146 calls expiring next week. Liquidated position for a small loss.

CCJ – long $39.5 – looking for a high of $41 retest.

XLE – sold the remainder.

NVDA – long $445 – stopped out 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 BIDO financial advisors and tax advisors to determine the suitability of any investment.