Weekly Plan 4/17
Hello traders,
Hope you had a good week trading last week.
This weeks seems less chock-a-block with macro action as opposed to last week but it has been balanced by kick off of tech earnings.
Earnings:
More banks, chips and tech.
I still firmly believe that big banks are safe and the sold puts on JPM expired worthless as indicated in last week’s plan.
Regional banks, however are a different story and since our puts on OZK 0.00%↑ went 5-7x last month, I would like to keep an eye on the regional banks and pore over through their earnings to see any visible cracks in the system.
As far as tech goes, NFLX 0.00%↑ as usual is a cointoss and I like to abstain from it.
TSLA 0.00%↑ however is in a spot of bother.
Weekly inventories are piling up across North America and my Tesla dealership here up north, has already called me a couple times with enticing offers and price cuts. Not all doom and gloom for Elon as he has his hands full with other endeavors.
Chips: ASML, LRCX and TSMC are all reporting this week. It would be good to gauge the demand in semiconductors and how they are faring. With crypto prices going up and the AI frenzy, NVDA seems to be insulated from demand dampening in the other areas of the semiconductor usage. I personally would like to see LRCX and TSMC miss but I have no position at the moment.
Realisitically speaking, markets work in sprints and pauses. After an exciting March-April rally, everyone is expecting a pause or a retrace in the broader markets in the wake of tech earnings.
But is that our viewpoint?