Week 28: Weekly Preview & Recap

Hello members! We hope your weekend is going well. We’re hoping to help get your game-planning on track by taking a few minutes to look at the week ahead.

That’s a quick glance at the econ reports, earnings schedule and the weekly charts in an effort to “zoom out” and get a better idea of where things stands on the larger timeframes.

Quick Recap

After a tough short week to start Q3, the bulls bounced back last week. The S&P 500 rallied in four out of five trading sessions, gaining Monday through Thursday, before an ever-so-slight decline on Friday of about 0.10%.

The bulls reacted well to Wednesday’s CPI report, which showed a miss on the four major measures that are tracked by economists. That said, the market is still pricing in a ~97% chance of a 25 basis point rate hike later this month.

In any regard, it was quite a week for the bulls as the S&P 500 climbed 106 points or 2.4%, while the VIX fell 10% and is hovering just above its 52-week low at $12.73.

• Nasdaq index climbed 453 points or 3.32%

  • ARKK climbed 11%

• Dow climbed 774 points or 2.3%

• Russell climbed 66.4 points or 3.56%

• 10-year yields (TNX) fell 5.7%

• Dollar Index (DXY) fell 2.26%

  • It’s biggest weekly decline since November and now at 52-week lows

• Bond futures (/ZB) climbed 2.17%

• Bonds ETF (TLT) climbed 2.23%

The Week Ahead

We don’t have to worry about the Fed until next week (on Wednesday July 26th). However, we do have earnings to start focusing on this week.

The banks kicked things off on Friday. While JPMorgan reported pretty good results (which helped out our long position), the banks overall didn’t fair too well. WFC ended slightly lower on the day and Citi put in a nasty bearish engulfing stick after its print.

Is that a sign of things to come?

While Monday is light on earnings, the banks pick up the action again on Tuesday. TSLA and NFLX get the ball rolling for tech on Wednesday, while TSMC’s report on Thursday morning could have an impact on chip stocks.

What we’re watching: I want to see how the banks hold up early in the week. Do they find buyers or are they a canary in the coal mine?

Earnings

The S&P 500 — SPX

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