Written by Moneypig Trading
1. Some important events this week:
Oct 3rd 9:45 am EST ISM Manufacturing
Oct 4th 8:30 am EST Non-Farm Payroll
Oct 5th 8:15 am ADP Employment change
Oct 5th 10:00 am EST, Factory Orders, Durable Goods
We also have lots of investor's day this week from these companies:
Oct 3rd: $SBGI, $ILMN, $RGNX
Oct 4th: $DUK, $AEP $HAS $TTD
Oct 5th: $HCP
Oct 6th: NUVA, $VERU
Oct 7th: $BOX
2. Fed SOMA balance and market summary
Fed decreased its SOMA balance from $8.29 tn to $8.27 tn in the past 7 days. The decrease could elevate $TNX, financial, industrials stocks& lower the tech & growth stocks. Also, in the FOMC 2 weeks ago, Fed did say they would speed up the balance sheet reduction, which could further pressure the crypto and stock market.
3. Individual Charts to watch
3.a. $SPY
Downside: The key support this week is 362.77. This level breaks, the key supports are 354, 348.
Upside: 362.77 gap filled, 367, 368
Comment:
$SPY is in a tricky spot where it is a bit oversold. Seasonality-wise, $SPY tends to sell off into the Sept end and bounce hard on Oct. However, the fear of inflation, more aggressive rate hike in Nov/Dec 2022, and Fed SOMA reduction should continue to pressure the market this week. On the other hand, more and more stocks are in the oversold level (RSI < 30), so we could see more and more short covering and the chance of a bear market bounce is higher and higher. So it is hard to tell how $SPY will react this week. We have to see if the $SPY daily chart can hold the 362.77 level or not.
3.b. $BTC Bitcoin $MSTR
$BTC Downside: 18085 range week low, 17049 for this week
$BTC Upside:18770, 19571, 20397 this week
Comment: $BTC holds the 18K~19K range very well. If growth assets continue to sell off, we should see $BTC start to have more downside momentum. Last week we mentioned bitcoin miner $MSTR has a downside $184 target, which was hit two weeks ago and is still the near-term downside target.
3.c. $RGNX
Downside: 25.12 key support this week.
Upside: 27.74, 28.86, 30.71
Comment:
RegenxBio is an early-stage biotech focusing on genetic therapy. $RGNX will hold an interim update from the ongoing Phase II AAVIATE trial of RGX-314, which could be a catalyst of their stock price. $RGNX is one of the few stocks that held up in the last week general market sell-off.
Possible Action (No action yet):
$RGNX 10/21/22 30c long at $0.5/contract
3.d. $MLCO, Melco Resorts & Entertainment Ltd
Downside: 6.5, 6.27 critical supports this week.
Upside: 7.18, 7.3
Comment: Macau reopens for tourism. All the casino stocks that have heavy Macau operations, including MLCO, were popping last week. $MLCO Daily chart currently is a classic bull flag to the upside.
Possible Action :
$MLCO 11/18/22 7c long continues to hold or add
Disclaimer: we long $MLCO
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Moneypig Trading team
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Moneypig Trading