At the close on the 17th we went long on the SPY at $128.66. We are setting an initial stop loss at $123.50 to avert any major disasters. We expect to move this to a more sensible level though as the trade matures. We remain long on the QQQQ from $41.92, with a stop point at $40.87.
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We also went long BRCM at 43.33. Details of this are provided below.
The market traded higher yesterday as investors digested tame inflation data and hints that interest rate hikes could be coming to an end. This aside, yesterday’s rally had willing participants from a broad range of economic sectors from financials to materials. However what stands out is the renewed strength in semiconductors. We’ve said before that we rarely see a broad rally without significant contribution from the chip stocks. To cap it all, most of the earnings reports so far have been better than expected.
The ES broke powerfully through its four day range to head back towards the highs volume was there, but not overwhelming. Resistance at 1321will be a true test of the strength of this rally. Similarly 1316 is long term resistance on the SPX that could be our next significant resting point if this rally persists.
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