Power Plays Weekly Roundup + MSFT Trim
January 19, 2024

By Scott Redler

First things first: we'll take off another 1/3 of Microsoft (MSFT) for Power Plays. This leaves us with 1/3 left.

The big story to close the week is tech gapping up after the amazing guidance from Super Micro (SMCI). Taiwan Semi (TSM) also gave big guidance yesterday plus Mark Zuckerberg said Meta (META) is buying a lot of Nvidia (NVDA) gear.

The tech optimism is helping to broaden out the rally, and now it looks like the SPX might be ready to get above the 4783-4902 area and extend.

However, I'd like to see small caps participate, and perhaps see the banks get back in gear.

But overall, it still pays to exercise "caution optimism" as we focus on finding opportunities instead of trying to predict recessions and crashes.

SPY has resistance above in the $471 to $473 area. That's where the bulls need to break through to generate more upside.

For now it's time to pick our spots carefully and control our risk.

Now let's go over our Power Plays:

Eli Lilly (LLY) started the year in a big way with a power move up to new all-time highs. But I'm glad we took off half higher. For now I want to see it hold the $610 area.

Alphabet (GOOGL) is getting a boost from all the positive tech news. I bought some $145 calls for next week, and I'd like to see it get above that pivot for some near-term gains.

Amazon (AMZN) has not been a leader but I think it can rally into earnings, so I'm sticking with it for now.

SPDR Gold Trust (GLD) has been sluggish, which is very disappointing because I thought it had big potential. But it's still building so I'm not turning on it yet.

Microsoft (MSFT) has been dominant as of late, but I think it make sense to trim into the strength for risk management purposes. I still think it can get over the $400 area.

Have a great weekend!


Scott Redler Positions Disclosure as of 2024-01-19 at 8.32.17 AM