Market review from UTEX – week 39

The Fed kept the rate, indices corrected. What to trade now?

All major indices closed last week in negative territory, losing an average of 3% each. So far, nothing prevents the market from going even lower.

Several Fed members' speeches are scheduled for the next few days, which the market will follow closely.

Traditionally, two-three weeks after the rate decision are the best weeks for trading: movements become more directional and there is less nervousness. Hopefully, it will be the same this time. 

This week's top 5 stocks

Costco Wholesale (COST). The world's largest chain of self-service club-style stores will report Tuesday after the close. Not the easiest stock to trade, but it could rock on the report. 

Micron Technology (MU). The chipmaker has been in a very slow uptrend since the beginning of the year. A support line has formed along the local lows and is now at about the $65 level. Analysts at Deutsche Bank changed their assessment of the company from Hold to Buy a week ago, as MU chip prices are recovering faster than expected. We wait for the report on 27 September after the close. If there is a gap down, be careful with longs.

Nike (NKE) is down 25% in six months. There is still room to fall to the nearest major support around $82.50. Report Thursday after the close.

Carnival (CCL). The coronavirus-hit cruise company reports on 29 September before the open. After the stock's killer 2020 plunge from $50 to $8, many rushed to add it to their portfolios. It's been more than three years, and CCL is still not far from the bottom. At a relatively low price, it shows good volatility on reports.

Cintas (CTAS) will report tomorrow before the open. The provider of corporate uniforms and related services has grown 10 times in the last 10 years to a $50B market capitalization. On 12 September, BofA Securities gave a Buy recommendation on the company and raised the target from $523 to $580. Although the levels are already good for profit taking.

Successful trades!

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