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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those aforementioned signals.
We also went long BRCM at 43.33. Details of this are provided
below.
Market Commentary
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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