Overall SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ all ended the week green, with IWM still showing signs of weakness.
Inflation figures came out this week showing major signs of cooling, but it wasn’t reflected too hard in tech as QQQ 0.31%↑ and most tech names still held under their key breakout areas. NVDA 0.00%↑ actually ended the week slightly red as we’re falling off the 277 supply zone.
The volume on the week remained weak on the continued press high as we kicked off earnings week with major banks taking the upside into their own hands. JPM 0.00%↑ WFC 0.00%↑ C 0.00%↑ and others all reported this week pushing financials higher amid the financial concerns in the banking sector. This earnings period has an expected contraction on a yoy basis as volume remains low in the market.
CPI came out this week, rising 0.1% putting the year-over-year rate at 5.0% which is the slowest pace since May 2023. PPI came out with a huge beat and drop in inflation figures which put solid upside pressure on the market. The Fed is still looking to continue the rate hikes in the end of the year. 83% to hike 25bps in May.
This week I’ll break down:
Past trades
S&P500
Index breakdown
More trade ideas.
1. Past Trade Ideas:
(for long term, can look at the other substack, last weeks)
Last week I mentioned some calls on GOOGL 0.00%↑ & QQQ 0.00%↑ if we could break out the tops, which didn’t happen, so they’re still on the radar.
JPM 0.00%↑ calls still printing from prior stacks...
Along with continuous GEMS on ES 0.00%↑ given to the room this week like Fridays tops called out for short.
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2. S&P500
SPY:
A lot of things are pointing to another leg up on SPY. The regime is bullish and intact. We're very close to the top of distribution at the 417/418 region. We're currently holding around the large ledge at 414/415 region (large gamma hedge). The breadth isn't at overbought (highly) just yet, the credit spreads are falling too into bullish equity format. There has been a constant bid this past week again, just giga bid is life, now for all of this to come to fruition I would say that this would have to happen at the beginning of the week and run if the offers get a chance to start the week we then would have to crush immediate support 406/405 region. Bulls are still in control.
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