Bill Baruch joined the CNBC Halftime Report to manage his Micron option trade and raise caution for the path ahead by trimming highflyers. Do not miss his macro-outlook.
E-mini S&P (December) / E-mini NQ (December)
S&P, last week’s close: Settled at 5791.25, down 13.25 on Friday and up 29.25 on the week
NQ, last week’s close: Settled at 20,221.50, down 124.75 on Friday and up 193.25 on the week
U.S. equity benchmarks finished last week unenthusiastically, despite the E-mini S&P’s record weekly settlement out above the previous all-time highs in July. Typically, this is a very bullish feat, and we do not disagree, it just may not be right here right now. There has been a tremendous rally since the early September low, and spending a week or so to digest the move is healthy, even if that means pulling back a bit. Last Thursday, Bill Baruch spoke about trimming some of the high-flying tech names in his more active and concentrated portfolio. Check out the video above.
The Shanghai Composite added another 8% overnight. This comes into quarter-end, amid retail FOMO, and ahead of a week-long holiday. The move does seem a bit overdone in the near-term but could be just the start of a longer-term bull market. Imagine being a manager in Asian equities and printing a quarterly statement that does not hold the likes of Alibaba, Tencent, Meituan, JD.com, and PDD.
Fed Chair Powell is scheduled to speak at 12:55 pm CT today, ahead of a data-packed week. Tomorrow, we look to ISM Manufacturing.
On Friday, E-mini S&P futures failed a retest of major three-star resistance at 5824-5827.25. This has now been adjusted to rare major four-star resistance at 5821.50-5827.25 and provides a line in the sand in which a close above is extremely bullish. With early weakness ahead of the bell, price action in both E-mini S&P and E-mini NQ futures is below our Pivot and point of balance. Continued action below this level, will encourage a decisive violation of major three-star supports at….
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