Hi all, 

This week’s economic data indicated that, overall, the economy is starting to cool off a bit. PCE price index was in line with expectations while the unemployment rate ticked up a little higher. Wage growth was also not as bad as some had feared. The only “fly in the soup” was the jobless claims which continued to drop for the 3^rd week in a row.

Odds for a rate hike in September are running at about 6% and the odds for a November rate hike dropped to about 35% from over 50% a week earlier. Bulls hope the current slowing economic data will be enough to keep the Fed on hold for more rate hikes.

 

The market looks set to move higher or, at the very least, churn sideways. 

 

Recap Video: 

Watch the recap on YouTube

Sectors in Play Last Week:

• Technology and Materials sectors were up the most for the week.
• Utilities and Consumer Staples were the biggest losers on the week.

Key Levels for this Week:

• DOW (34,837 now) – support level 34,200 and resistance is at 35,300
• QQQ (378) – support level 370 and resistance is at 380
• SPY (451) – support level 438 and resistance is at 458
• IWM (191) – support level 184 and resistance is at 195

What to Watch for this Week:

• Monday – holiday
• Tuesday –10:00 Factory orders.
• Wednesday – 9:45 Services PMI and 10:00 ISM services and  2:00 Fed beige book
• Thursday - 8:30   Jobless claims and Unit Labor costs, and Fed speakers at various locations all day.
• Friday – 10:00 Wholesale inventories.

View the Economic Calendar on Trading Terminal

 

Earnings this week:

• Monday – holiday
• Tues ZS, GTLB, ASAN post
• Wed AI, GME, CHPT, PLAY, PATH post
• Thurs DOCU post
• Friday KR pre

View the Earnings Calendar on Trading Terminal

 

Tracking:

- AAPL –Run up to Sept 12 iPhone 15 release. $195 resistance. 

- AMAT – Breaking out through $152 – looks like it could move higher.  Potential to sell puts.

- AMZN – Still $130 looks like support and $140 resistance.

- BA – Sold off on more 737 Max bad news. Still, $230 is resistance and $220 is support.

- DELL – under-the-radar tech stock to watch for after-earnings play.

- GOOG – Break out through the $133 level. That area should be support now.

- INTC – At $37 resistance. Expect pullback.

- NVDA – Possible double top just under $500. $480 seems like good support for a put sale there as a bullish bet it will hold.

- TSLA – rejection at $260. Possible put sale at $260 calls for a bearish bet.

 

Sector Watch

- XLE – Broke out Friday. Looks like it may go higher. 

XLY – Could break down below this $170 area

 

Positions:

AMAT – long $152.5 calls expiring next Friday

META – sold $275 puts expired kept premium

YANG – long from $10.15 stopped out at $10.

 

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.