<p>Welcome back to another market recap! This past week there was some AI news for chipmakers, a few data reports with jobless claims and retail sales and a few solid earnings reports! The next few weeks I would expect to be choppy due to earnings reports and the uncertainty of the US election results.</p><p class="button-wrapper"><a class="button primary" href="https://beansandbucks.substack.com/subscribe"><span>Subscribe now</span></a></p><p><strong>Tuesday: AI News</strong></p><p>Chipmakers like Nvidia took a hit on Tuesday after there was a report from the Biden administration that they may look to cap sales of advanced AI chips. Obviously, chipmakers and AI stocks have been on a tear recently, so this spooked investors. Indices fell due to their heavy weighting of Nvidia’s market cap.</p><p><strong>Thursday: Jobless Claims & Retail Sales</strong></p><p>The jobless claims report was issued Thursday morning as it is every week. We have discussed in the past that the job market is a heavy focus for investors going forward. Jobless claims came in at 241,000 vs the 260,000 that were expected. Once again, this pointed to a strong labor market and the S&P rose.</p><p>There was also a drop in likelihood that the Fed would cut interest rates 25bps. The chances were at 94% Wednesday but fell to 89% after this report. The opposite side of those chances, 6% and 11% respectively, is for a 50bps cut, not a 0bps cut. We will certainly be cutting rates further as the Fed said so themselves.</p><p><strong>Friday: Earnings Beat and Apple Sales</strong></p><p>Friday, earnings reports for the large mega-cap companies started coming in with Netflix. They beat their profit margins, EPS and even the outlook for the next quarter. This sent the stock to all-time highs.</p><p>Apple was also in the news Friday due to increased iPhone sales in China.</p><p>Finally, Nvidia also gained back some of its losses from earlier in the week due to a price upgrade.</p><p>The S&P rose strongly on this mega-cap company headlines and closed the week in the green.</p><p><strong>Technical Analysis:</strong></p><p>We broke out last week and held the breakout point all week. However, all of the red days came with higher volume, shown at the very right on the screenshot below</p><div class="captioned-image-container"><figure><a class="image-link image2 is-viewable-img" href="https://substackcdn.com/image/fetch/f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F5a2e27d7-9cbc-4d99-af48-e3d8158b4e96_728x735.png" target="_blank"><div class="image2-inset"><source type="image/webp" /><img alt="" class="sizing-normal" height="735" src="https://substackcdn.com/image/fetch/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F5a2e27d7-9cbc-4d99-af48-e3d8158b4e96_728x735.png" width="728" /><div class="image-link-expand"><div class="pencraft pc-display-flex pc-gap-8 pc-reset"><div class="pencraft pc-reset icon-container restack-image"><svg class="lucide lucide-refresh-cw" fill="none" height="20" stroke="currentColor" stroke-linecap="round" stroke-linejoin="round" stroke-width="2" viewBox="0 0 24 24" width="20" xmlns="http://www.w3.org/2000/svg"><path d="M3 12a9 9 0 0 1 9-9 9.75 9.75 0 0 1 6.74 2.74L21 8"></path><path d="M21 3v5h-5"></path><path d="M21 12a9 9 0 0 1-9 9 9.75 9.75 0 0 1-6.74-2.74L3 16"></path><path d="M8 16H3v5"></path></svg></div><div class="pencraft pc-reset icon-container view-image"><svg class="lucide lucide-maximize2" fill="none" height="20" stroke="currentColor" stroke-linecap="round" stroke-linejoin="round" stroke-width="2" viewBox="0 0 24 24" width="20" xmlns="http://www.w3.org/2000/svg"><polyline points="15 3 21 3 21 9"></polyline><polyline points="9 21 3 21 3 15"></polyline><line x1="21" x2="14" y1="3" y2="10"></line><line x1="3" x2="10" y1="21" y2="14"></line></svg></div></div></div></div></a></figure></div><p>Those large red bars would lead me to believe that selling is soon to takeover. That is exactly what happened today. However, an even larger bullish signal took place today. We dropped hard to retest that $5.8k breakout point and was bought back up to close near opening prices, signaling buyers presence. It was on lower volume, but this is generally a good sign for more upside.</p><p><strong>Coming Up Soon on Beans & Bucks:</strong></p><p>I will be going on vacation! Taking a European trip over the next 10 days, so no article this week or market recap / article next week. I will look to post a market recap for the week that I am gone if I can catch up on headlines, otherwise I will be back 11/7 with a new article! Follow my profile as I will be posting some notes during my journey as well!</p><p class="button-wrapper"><a class="button primary" href="https://beansandbucks.substack.com/subscribe"><span>Subscribe now</span></a></p><p>As always, thank you for liking, subscribing and restacking and I hope this was an informative recap for you all! Bonjour!</p><p>Prosperously,</p><p>Jim</p>