Market review from UTEX – week 42
Last week, the market rallied nicely in the first three trading sessions, but almost closed out all of the gains in the remaining two.
Geopolitical risks related to the conflict in the Middle East added to the uncertainty of the rate hike cycle.
The Fear Index (VXX) rose more than 10% on Friday, clearly reflecting investor sentiment.
As for economic data, we expect retail sales on Tuesday and home sales on Thursday.
About 100 companies with capitalization over $2 billion will report this week.
Top 5 stocks
Tesla (TSLA). One of the most popular companies reports Wednesday after the market close. Leaving overnight is not advised. There are a couple levels around $240-$280, but due to volatility and speculation, the stock is very technically challenging.
Philip Morris (PM). The tobacco company traditionally moves well on reports. There is very strong support around $90, from which the stock has been steadily bought back over the past year. If the stock opens below $90, a short is likely, but it is better not to speculate and look at the facts. The premarket on October 19 will show a lot.
Netflix (NFLX). Some analysts believe that the best years of the well-known media holding company are behind us, but the company knows how to surprise. We are waiting for the report on Wednesday after the markets close. On the weekly chart, the stock is currently exactly in the middle of its historical highs at $700 per share. We'll keep an eye on the pre and post-market reaction.
AT&T (T). There's no way the telecom company can stop falling. It's a tough stock to trade intraday. If the reaction to the report is positive, it is a candidate for a medium-term portfolio - buy and forget. Stop just below the 52-week low of $13.43. Waiting for the Oct. 19 report before the open.
Discover Financial Services (DFS). A financial company specializing in student loans and mortgages. At first glance, not an obvious choice, but it periodically gives out good moves on intraday reports and can perform pretty well even 2-3 days afterward. On the daily chart we can see the unusual reduced volatility since mid-August: the stock has fallen into the $85-$95 range. All the better, because there are enough stops accumulated, which will be taken out if the spring unravels to one side. The company will report on Wednesday after the close.
Have a good trade!
