Weekend Edition April 16, 2023 + Trade Idea
The Dow Jones Industrial Average fell Friday, but notched a positive week, as investors assessed a weak retail sales report that dented enthusiasm around a stronger-than-expected start to corporate earnings.
The 30-stock Dow dropped 143.22 points, or about 0.42%, to 33,886.47. The S&P 500 fell 0.21% to 4,137.64. Meanwhile, the Nasdaq Composite slid 0.35% to 12,123.47.
The Dow, however, notched its fourth-straight positive week, rising 1.2%. The S&P 500 and the Nasdaq, meanwhile, nabbed their fourth positive week in five. The broad-market index added 0.79% for the week, while the Nasdaq ticked higher by 0.29%.
“Retail sales came in weaker than expected, but a lot of the miss had to do with lower gas prices, which all things being equal is a slight positive for spending,” wrote Chris Zaccarelli, chief investment officer at Independent Advisor Alliance.
$SPY stormed out of the gate this morning tapping our target of 415 and rejected down to a double bottom 410 bounce back to 413 in the after hours today. What does this say about the momentum of the markets? Can't be bad right? Next week, we are looking for 410 to hold for continued upside and retest 415. Just think, we couldn't break 410 beginning of the week, then 411, then 412 and now we're above those levels after a volatile finish. As you can see below, we tapped our target of 145 morning right above in to the August High TL and closed right below it. I don't see anything bearish yet. HOWEVER...
We do have earnings season upon us. Brace yourself for more volatility as $NFLX $TSLA reports next week.
(BTW, Banks earnings was bullish today!)
Trade Idea: Taking the 365C $NFLX 04/28. I'm not going to touch $TSLA earnings. Usually a premium / IV burn killer on both sides.
U.S. ECONOMIC DATA THIS WEEK:
NY FED MANUFACTURING INDEX (MON.)
HOUSING STARTS (TUES.)
JOBLESS CLAIMS (THURS.)
PHILLY FED MANUFACTURING INDEX (THURS.) E
XISTING HOME SALES (THURS.)
SERVICES PMI (FRI.) MANUFACTURING PMI
TLDR? Video below.