Market review from UTEX – week 41

Last week, the major U.S. indices closed in the positive, although they fell sharply after the release of unemployment data.

It seemed that we were in for a sell-off. However, the market opened with a gap down and closed it within the first hour. It then continued to rise even further, ending the whole week in the positive. Is this the first signal for long positions or profit-taking on shorts? We will soon find out.

We are anticipating economic indicators including the Producer Price Index data and the Fed meeting minutes on Wednesday.

A new earnings season is starting, with plenty of stocks available for trading next month. It's time to focus, set aside unnecessary matters, and get to work.

Top 5 ideas for the coming days

Fastenal (FAST). The large industrial products distributor is traditionally one of the first to report. It used to move nicely on the day of the release, but over the last year, it has been trading in a range around $55. Ideally, it makes sense to participate if there is already a gap in either direction in the premarket. The company will publish its numbers on Thursday.

PepsiCo (PEP). Perennial antagonist Coca-Cola (KO) will report on Tuesday. The chart looks oversold at first glance. There is good support at $155 on the weekly chart, but it is trading below an important level around $170. The stock has some room to move, which is good for trading.

Domino's Pizza (DPZ). The largest pizza chain in the world. It is characterized by increased volatility in its reports, so we strongly recommend not taking action before the data release, as a gap of plus or minus 30 points is possible. There will likely be very fast and strong movements during the day for those who like it “hotter”. The report is expected on Thursday before the opening bell.

Walgreens Boots Alliance (WBA). The world's largest drugstore chain has fallen on hard times. It is in a rebuilding phase, cutting costs, optimizing its supply chain, and investing in its online platform. The graph clearly shows the current situation. Some analysts believe the stock is undervalued and next year could be a successful one for the company, but the opinion is highly questionable given the competition from online pharmacies. If there is an upside on Thursday's report, it could be a mid-term portfolio candidate with a $20 stop.

JPM, C, WFC, PNC – four banks will report on Friday. The banking sector is tough to trade. When choosing, look at PNC, as it is usually the most reliable on the intraday chart.

Have a lucky week, everyone!