The MARKet Update – 11/04/22

We bought three new calls yesterday as the market was supporting the 3720 ES levels I’ve been providing in the news alerts.  Today was an interesting day.  News came out this morning that unemployment rose slightly but payroll wages increased.  The market took this normally lousy unemployment news as good news today as the FED has stated they want a higher unemployment market as part of their overall formula in order to begin easing their rate hikes.  The market however did not like that wages increased again however.  So what to do?  Bounce up or crash as the news was a mixed message.  Well after a gap  up, it sold off, but rebounded and climbed all the way up to 3800 hitting supply/resistance and then sold off toward the 3720 level and hung around there for a few hours as the bears could not break below, and eventually bulls took it out of the 3730-3740 range and ended the day at 3780.  Google, Apple, Amazon, Meta, Nvidia, and many others all ended green indicating buyer support and not a headfake.

Tesla fell after an initial pre-market high, but it didn’t break the 200 level so I held onto the Dec calls.  Amazon Dec calls down 1% for the day, and the SPY calls are up 27%.  The day ended bullish and I decided to hold them into next week as we may crack that 3800 resistance before all is said and done.

Enjoy the weekend!  The mid-terms next week should provide some interesting action in the market.

–Mark