Happy Saturday
I hope you are having a great weekend. After going through my index and sector scan there is probably reason to be a bit cautious next week. Technically we had a couple of reversals on Friday after a very nice run. With the Fed coming up and another rate increase likely we could see the dollar strengthen which bounced off potential price support on Friday and could get some follow through next week. That could put pressure on the large cap multinational equities. The big tech social media plays are likely going to be under pressure as the Trump administration opens up an investigation by executive order into Google Twitter and Facebook.
There will be a tremendous amount of economic data next week to absorb that may impact the markets. The Fed meeting and announcement leading the list but we also get consumer confidence, home price index, GDP revision, Chicago PMI, core inflation, and personal income. There is a lot going next week and I am sure we will have more trade war rhetoric from Canada and China.
The cannabis space was the big winner last week but now we are starting to see signs of volatility and that sector could be looking at a near term correction. There may be some great short term trading opportunities but you will have to be quick and make sure you play them size appropriate.
We may want to watch the volatility plays like TVIX UVXY VXX
No free video this week I will get the pro member video for stocks to watch tomorrow morning for the pro members.
Enjoy the rest of your weekend and good luck trading next week.
More IPO's on the way
IPOs expected to price: Vioma Technology (VIOT) on September 24; Capital Bancorp (CBNK), Entasis Therapeutics (ETTX), SVMK (SVMK), Arco Platform (ARCE) and CooTek Cayman (CTK) on September 25; Sutro Biopharma (STRO), RA Medical Systems (RMED), LAIX (LAIX), Urovant Sciences (UROV) and Arvinas (ARVN) on September 26; Gristone Oncology (GRTS) on September 27.
Source Seeking Alpha
NEXT WEEK'S MAJOR U.S. ECONOMIC REPORTS & FED SPEAKERS
TIME (ET) REPORT PERIOD ACTUAL FORECAST PREVIOUS
MONDAY, SEPT. 24
8:30 am Chicago Fed national activity index Aug. -- 0.13
TUESDAY, SEPT. 25
9 am Case-Shiller home price index July -- 6.2%
10 am Consumer confidence index Sept. 133.4 133.4
WEDNESDAY, SEPT. 26
10 am New home sales Aug. 634,000 627,000
2 pm FOMC announcement/projections 2-2.25% 1.75-2%
2:30 pm Jerome Powell press conference
THURSDAY, SEPT. 27
8:30 am Weekly jobless claims 9/22 -- 201,000
8:30 am GDP revision Q2 4.2% 4.2%
8:30 am Durable goods orders Aug. 2.0% -1.7%
8:30 am Core capex orders Aug. -- 1.6%
8:30 am Advance trade in goods Aug. -$71.3bln -$72.2bln
10 am Pending home sales Aug. -- -0.7%
FRIDAY, SEPT. 28
8:30 am Personal income Aug. 0.4% 0.3%
8:30 am Consumer consumption Aug. 0.4% 0.4%
8:30 am Core inflation Aug. 0.1% 0.2%
9:45 am Chicago PMI Sept. -- 63.6
10 am Consumer sentiment Sept. 100.8 100.8
Source Market Watch.com
A few indexes and sectors worth noting
Biotech making a short term lower high watching for potential lower low this week
Small caps consolidating a stronger dollar could be good for small caps would like to see the 50 day hold as support
Transportation flaggin would not be shocked if we were to pull to the 50 day and test former prices resistance as potential support
Tech short term lower high watching for a pull to the 50 day see if it can hold as support
Semi's Short term lower high MU gave a warning on the effects of the trade tariffs could continue to weigh on the sector in the near term
SPY pierced the upper BB may see a pull to the 50 day in the 286 range
Looking for potential follow through of the bounce on Friday
Financial stocks nice pop last week could have run into the anticipated rate increase
Industrials after a huge run are sitting right at potential price resistance on the daily
Consumer staples flagging at potential price resistance A break over 55.50 could give the names in the sector a lift there are several packaged food plays that have nice looking daily setups
Consumer discretionary several restaurant stocks have good looking daily setups could be a space to keep an eye on
Health care has had a tremendous run would not be surprised to see some consolidation or potentially a slight pull back into the 92 range or even a 50 day test of support
Last Weeks list of Pro member stocks to watch and their performance
(Take a look at the TRK % column for the performance percentage for the week)
