The market is showing its power, and even a US credit rating downgrade can't break it. Corporate news is ambiguous. Most corrections in shares are still being bought out, and longs are pleasing traders with good profits.
The upcoming week will be the “closing” week of this earnings season: the second half of August is the traditional vacation period. It is a good time to make profits!
Top 5 stocks of this week
Li Auto (LI). Chinese automaker stocks are back on our radar. The quarterly report came out today before the market opened. Reaction so far is mixed, but we would view any drawdowns as an intraday and mid-term buying opportunity. Targets at $50+.
Roblox (RBLX). One of the largest companies in the gaming sector will release its quarterly report on Wednesday before the market opens. The most interesting thing is the active user count. The sector is severely underperforming the market, expect good moves into the $44-46 range.
Ebix (EBIX). The company will also share a report on Wednesday. Analysts' expectations are not the most optimistic, but the situation on the daily timeframe shows otherwise. We'll see volatility for sure, so keep a close eye on the stock.
FutureFuel (FF). The stock is a medium-term growth contender. If Wednesday's report does not disappoint, we can safely consider $12+ levels.
Alibaba (BABA). Another Chinese company for this week. The marketplace sector is doing great. Perhaps BABA will finally turn around after a two-year downtrend. Expect $100+ after the report.
Have a good trade!