Your Trading Week Ahead — September 6th

Welcome to Your Trading Week Ahead for September 6th. We hope you had a great Labor Day and enjoyed the long holiday weekend!

We have a short late-summer week of trading in front of us. Here’s what you need to know before you go…

Quick recap

Equity markets closed Friday just under fresh all-time highs set earlier in the week as investors largely shrugged off a very weak employment report. The data, reported Friday morning, showed U.S. nonfarm payrolls only added 235,000 jobs in August. That’s almost half a million jobs short of the 720,000 figure experts were anticipating.

It seems like nothing can stop this market from melting higher. But Miller Tabak’s chief market strategist Matt Maley shared an important warning on CNBC’s Trading Nation last Thursday. Maley stressed that he sees similar red flags in the current market environment that appeared during the dotcom bubble, when stocks shot sky-high despite a lack of fundamentals.

There’s a huge amount of froth in the marketplace right now much like we’ve seen in other important tops of the market that only became obvious in hindsight. Now we have a very similar situation. You have the meme stocks which are flying. They’re not going to change the world and these stocks are going up 2,000% in just a few days. You have these SPACs that are going crazy here. We have a stock market that’s very, very expensive, and a market that is overbought.

Only time will tell if Matt Maley’s analysis is correct…

The S&P 500 ultimately finished the week higher by 0.58% at 4,535. The Dow closed slightly lower at 35,369 — down just 0.24%. Tech stocks led the way once again, as the Nasdaq closed higher by 1.55% at 15,363.

Cryptocurrencies are pressing higher as well. At writing, Bitcoin ($BTC) is trading at $51,770, up about 10% in the last week. Ether ($ETH) +18%, XRP ($XRP) +20%, and Solena ($SOL) +45% are some of the other crypto leaders on the week.

What to watch this week

Earnings roundup

Earnings season is beginning to wind down. But there are several popular stocks still left to report.

Here’s some of the most noteworthy reports to keep an eye on this week:

• Tuesday – UiPath ($PATH) after market close
• Wednesday – SentinelOne ($S),Copart ($CPRT), Gamestop ($GME), Lululemon ($LULU) and RH ($RH) after market close
• Thursday – Oracle ($ORCL), Zscaler ($ZS), Affirm Holdings ($AFRM) and Dave & Buster’s ($PLAY) after market close
• Friday – Kroger ($KR) before market open

Economic calendar

There are several events on the calendar this week with the potential to move markets. Here’s some of the most important things to watch:

• Job openings (July) – Tuesday at 10am ET
• Fed beige book – Tuesday at 2pm ET
• Consumer credit (July) – Tuesday at 3pm ET
• Initial and continuing jobless claims – Thursday at 8:30am ET
• Producer price index (August)- Friday at 8:30am ET
• Wholesale inventories (July revision) – Friday at 10am ET

Interested in learning how you can use the power of unusual options activity to conquer the market? Click here to download our Insider’s Guide to Trading UOA.