Daily Commentary: October 14, 2024

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Market Will Float Higher

Posted by Pete Stolcers on October 14
www.oneoption.com

Not much conviction and that favors the current trend.

PRE-OPEN MARKET COMMENTS MONDAY – Today is a banking holiday so the volume will be light. Overseas markets were up marginally so there is a slight tailwind. Don’t chase the opening gap up to a new all-time high.

The economic news is fairly light this week. Retail sales will reveal the health of consumers. After a spike last week, we will need to keep an eye on initial jobless claims Thursday.

Earnings will be the focal point and they will be dominated by banks. The results should be good since people have jobs. They are borrowing money and paying back loans. I am not looking for a big rally in these stocks, but they won’t be a drag on the market either. The big earnings release is TSM Thursday. The company has previously reported strong revenue growth and it will set the tone for tech. NVDA announced that its new Blackwell AI chip is sold out for the next 12 months.

The volume is light (low conviction) and the trend is higher (mixed overlapping candles). That tells us that the market is likely to float higher. Don’t chase gaps up. Be patient and buy dips. This pattern is likely to continue until the election.

Support is at $574.70 and AVWAPQ. The market is making a new all-time high this morning. Resistance is one 20-day ATR from the close Friday.

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