Welcome to another Sunday Scan. This week we have Chris and Judah recapping the past week’s action, discussing some general market insights, and sharing some watches for the week ahead.
Video Scan and Game Plan
Chris’ Take on the Market
This is the first correction in SPX in months, primarily driven by a few things.
Expectations of rate cuts were slashed, and bond yields rose sharply after the Fed changed its tone following the hot inflation reports.
We also have increased geopolitical tensions in the Middle East, which is contributing to a higher VIX environment.
And the main AI theme that has been driving the market is pulling back and reorganizing with earnings releases.
Financials pulling back also contribute to this.
I will keep an eye on changes in the key variables that took us lower to guide my view. Corrections are common in SPX, but if there is a real market structure change, then those can get ugly.
Time will tell.
CVNA was a good trade last week that Stan and I discussed on last weekend’s Sunday Scan. That key area broke, we had steady selling for a day, and then it stabilized. In this kind of environment it’s better to observe than assume. How is it acting? Is it drifting or clearly trending? That can offer clues.
TSLA reached the 150 target we’ve been talking about. This name is sensitive to rates and the company is going through a transition period.
Chris’ Main Watches
MARA crypto halving on watch for a bounce or trend change if BTC and market agree.
NVDA is the AI leader still, so even though money has been flowing out, if the sector heats up again this is the go to.
AMD has relative weakness and on watch for puts if it continues down.
ARM same as AMD
RDDT is on watch for a bounce trade if the market bounces.
Judah’s Main Watches
INDO TPET and HUSA – Potential legs up next week with impressive builds on all
ACB – Nice looking cannabis name that continues to look and hold well. Worth watching for continuation above 6.65 key
JAGX – Worth watching for any continuation over .18 area
EJH – Liquidation name that’s holding here. It’s worth watching over the 3.15-3.20 area, but be super cautious; know what you own.
Judah good call on the market consolidation today .