Hope your weekend is going well! Here is a quick recap of Markets for the Week of October 27th, 2023 and what we are watching this week 👨‍🏫

This week S&P 500 has led to a decisive break below the 200-day moving average and important support 4,200. The next level of key support is 4,000 and 3,900 which happens to be it’s 200-week moving average and where we bounced in October 2022 and March 2020.

The “good news” is that as of the close on Friday, markets are oversold (measured by the Relative Strength Index and breadth) which means we can get a near-term relief rally.

Now the gust of that bounce will be important and decide whether we get a Christmas Rally or coal and are stuck in this short-term downtrend.

Will Bulls step in and say that’s enough or the Bears keep them scared away?

Here are the key points from last week:

• US Q3 GDP - came in higher than expected at 4.9% vs the 4.7% forecast. Personal consumption increased 4% for the quarter after rising just 0.8% last quarter.

• New Speaker of the House - Rep. Mike Johnson (R-LA)

• Despite good earnings, reactions have been negative Small data points in results or guidance have brought sharp sell-offs' for what might have been considered solid results in prior quarters. The percentage of beats on earnings is coming in below the 75% long run average (FactSet), at only 67% of companies beating estimates.

• “Magnificent 7” took a powerful blow - even good earnings from Microsoft (MSFT), Google (GOOGL), Meta (META) and Amazon (AMZN) weren’t enough to bounce markets. The equal weighted basket of these seven companies is now off 12% over the past two weeks and off 13% since peaking in July.

$SPY: Bulls failed to hold that 420 and 200 day moving average we wrote about last week and sold off sharply down to our 410 price target. We are testing the previous breakout level here, if that fails 400 and 390 would be next price targets in play.

While the S&P 500 is down 6% since our hedge video here from the September 23rd post. The SPXU hedge we spoke about is up +22%.

$QQQ:  failed to hold that 355 support we wrote about last week and also sold off sharply. It is down 7% since our hedge video callout while SQQQ is up nicely +25%.

+20% return on your money in a month in times where inflation is at 4%, the best bank offer is 4.5%-5% and the markets are down 6-7% is a great ROI if you ask me 🤷‍♂️

Learn to make your money work for you, rather than you chasing it.

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💻$GOOG: we wrote about that $140 level last week and even though Google’s earnings weren’t bad it contained some relatively disappointing growth for its cloud business which caused the stock to tank over 12% to our first price target of $120.

📺 $BTC: Bitcoin broke through that 32,250 resistance we mentioned last week and tagged our 35,000 price target where we took some profit in our swing trade from June +40%. It spent the rest of the week consolidating in a tight range 33,500-34500.

💾 $AMD: reports earnings on Tuesday after the close. Now even though the semiconductor sector has been weak down 10% since we warned about on October 16th here, is this a buyable pullback?

AMD is in a steep falling wedge down 27% from it’s high of $132 in June. If it can hold $90-$95 and reclaim $100-$110 this is a discounted buy.

🍎$AAPL: Apple is reporting earnings on Thursday after the close. All attention will be on new iPhone sales, tensions with China update and forward guidance due to macro-economic events.

Apple has been in a steady downtrending channel down 14% since July as it tries to hold $170-$175 support. Failure to impress investors and it has room to $155

🥇$NUGT: As Gold looks to breakout, we are watching NUGT (Gold Miners 2x ETF) for a swing trade setup. Especially if markets keep pulling back to hedge our portfolio.

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See you next week! 👋