Power Plays Weekly Roundup
Exit NVDA & XBI
November 15, 2024
By Scott Redler
First, to start out, we'll take off XBI and Nvidia (NVDA).
With Robert F. Kennedy selected as the head of the HHS, biotech and pharma may end up in a holding pattern. So we'll take the loss on XBI and move on.
As for NVDA, it's had a great run for us since we added it at $119.16. But it reports earnings next week and I don't want to hold the stock into the report. I am long NVDA $150, $152.50, and $155 calls for November 22 though. So you can look at those if you want options exposure.
My overall strategy now is to play smart defense.
The market is focuses less on the pro-business aspects of the administration, and more on the potential for higher deficits and inflation.
That's why small caps are already trading into the post-election gap.
I'm keeping a close eye on yields. If the 10-year yield gets over 4.7%, the market will not be happy.
And I want to see SPX stay over 5942. A break of that means $5878 can come into play.
So let's be careful in the near term, and watch these levels.
Remember, price action is what matters.
There are a lot of people throwing opinions around (both positive and negative) but we'll make decisions based on what the market is telling us.
Now let's dig into our names:
VanEck Semiconductor ETF (SMH): the semis look due for some positive rotation into Nvidia's earnings report next week, so I added SMH to Power Plays this week. It would help if buyers prop up AMAT, which is down after earnings this morning.
Apple (AAPL): this joined Power Plays last week as I think it can resolve higher. However, as I've said, it may be more of a slow grinder than a superstar like TSLA/AMZN.
Amazon (AMZN) finally broke through that $200 wall to hit $215.90 yesterday. It can see $220 by year-end. However, I would not chase it into strength. I'd wait for a pullback if you want in.
iShares Bitcoin Trust ETF (IBIT) still looks great and I think it can rally big into Thanksgiving.
Have a good weekend!
-Scott
Scott Redler Positions Disclosure as of 2024-11-15 at 7.23.20 AM