Weak Jobs report, higher yields, crude oil at highs and a timid rally

Happy Saturday fellow traders and welcome to our Weekly Digest. It has been a busy week on Wall Street. We continued to have strong headwinds present as the Treasury yield surpassed 1.6%, oil reached its highest level since 2014 and the lawmakers in Washington took their time before they managed to stop a debt ceiling fiasco.

Amid these headwinds, the market tried to bounce starting on Wednesday as it reclaimed the previous lows. We gapped up on Thursday, surpassing the exponential moving averages for the first time since the middle of September. The bulls seemed to have reclaimed control of the reins until Friday’s weak action which filled part of the earlier gap. A weaker than expected jobs report for September corroborated with a spike in the Treasury yields took the whole market lower. Tech was the most affected sector as the $QQQ filled the gap to the downside.

We continued to be on our toes throughout the week as we tried to maneuver this choppy market. We had a nice bounce in our portfolio on Wednesday-Thursday as we engaged several tech stocks amid the rally in the markets.

Since September we continue to be in a sideways-downtrend market which is best dealt in 2 different ways: either you stay away until the dust settles or you try more day trades and quickly book profits and wait for the next set-up. We have tried both approaches throughout this week, but in the end we have decided to remain active and look for day trades and try to keep you up to date as best as possible.

Let’s look at the best trades of this week for our portfolio:

$F chart

This stock has been acting great for our portfolio as a swing trade. We have been buying throughout the week amid the selloff and got rewarded as it pushed above the weekly pivot resistance at 14.79. We continue to be long this name going into next week based on its recent commitment to its EV projects.


$UBER chart

This stock continues to act very well. It managed to get above the recent downtrend and made a new weekly high on Friday. Our price target for the next period is $50. We continue to buy weakness as it is difficult to chase. So far so good. We have engaged this name from $42.


$MSFT chart

The software giant gave us a good entry point on Wednesday around 286 and an impressive rally above 295 by mid-afternoon Thursday. This has been a strong stock amid the selling on Monday-Tuesday so we had more conviction engaging this name when the $QQQ started to act better. We currently hold no position in this name apart for an option play for earnings later this month. This stock has been one of the few in the tech sector that managed to reclaim its moving averages and close above them.


$BTCUSD  chart

Bitcoin has been a great addition to our portfolio in the past two weeks as we engaged this crypto at 45K. We exited our position at 55K as it reached a previous resistance area. This level coincides with the same one from where it broke its uptrend from the all time highs. We exited after a 22% increase from our buying area. It continues to act well, forming another bull flag above 53K. The next time it attempts to get above 55K we might revisit.


We hope you managed to have a decent week by being tactical and booking trades along the way. It is definitely not the time to be overly bullish or bearish in the market. We are at a key inflection point in the main indices. With the earnings season starting next week, our advice remains the same as before: Stay tactical!

Have a great weekend!

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