Hi all,

The jobs numbers were in focus on Friday with payrolls reported weaker than had been expected. There was also a downward revision in the July numbers.

The labor market continues to weaken, although, by most measures, it is still strong. The trajectory of the numbers, which continues lower, is making investors and traders nervous.

The market has a September rate cut factored in at 0.25% for sure and possibly even a 0.50% cut.

September is proving to be a rough month for the markets, as it has been in the past. Next week, CPI and PPI data will be released, and they are expected to show that inflation is now under control. 

There has been a rotation of money out of high beta tech sector to the safety sectors such as staples and utilities. With this week’s significant pullback, maybe we will start to see some support and consolidation around these levels.

Recap Video

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Sectors in Play Last Week

• Consumer Staples and Real Estate were the small gaining sectors this week.
• Tech and Energy were the sectors most in the red.

Key Levels for this Week

• DOW (40,345) – support 40,000 and resistance 40,800
• QQQ (449) – support 440 and resistance 470
• SPY (540) – support 530 and resistance 560
• IWM (208) – support 205 and resistance 210

What to Watch for this Week

• Monday – 10:00 Wholesale inventories; 3:00 Consumer Credit
• Tuesday – nothing of note
• Wednesday – 8:30 CPI data
• Thursday –8:30 Jobless claims and PPI data
• Friday – 8:30 Import Price Index; 10:00 Consumer Sentiment

Earnings this week

• Monday – ORCL post
• Tues – PLAY, WOOF, GME post
• Wed – nada
• Thurs – SIG pre and ADBE post
• Friday – nada

Positions and Trades Last Week

The cash % level is high now. Waiting for new opportunities.

• AMZN – long calls on Friday, sold a lot at the end of the day but still holding some into last week - able to get out on a rally mid-week flat on the remainder.
• CMG – long.
• GDX – sold
• PLTR – long small size still. Going to be added to S&P 500 with DELL.
• UVXY – holding small size.

Tracking for Potential Trades

• AMRK – break-out but need better entry around $41.50 for a long
• SPXL – for possible bounce back on SPY
• NFLX – again continues to look strong but has pulled back– possibly put vertical or selling naked puts for the risk takers.
• UVXY – for a continued possible meltdown in stocks.

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.