Market review from UTEX – week 45
Five trading sessions in the plus side, major indices up over 6% – last week was the best for US markets in 2023! Here are five ideas for trading in the coming days.
On Wednesday, the Fed left the rate unchanged, and now 95.2% of market participants believe that it will also remain unchanged at the next meeting. On Friday, 80.4% thought so. Jerome Powell said that this time the Fed members did not include recession in their baseline forecast and the US economy grew faster than expected in the third quarter.
While bitcoin is consolidating in its new range, growth continues in many altcoins. MultiversX (EGLD), for example, surged 40% over the weekend!
The earnings season continues to delight with strong moves, it's not time to relax. The market situation has changed, be careful with shorts. Historically, November and December are the most profitable months in the market, so we may yet see a Santa Claus Rally.
Top 5 ideas for this week:
International Flavors & Fragrances (IFF). One of the world's largest manufacturers of perfumes and flavourings will report on Monday after the markets close. The company has lost 25% of its capitalisation in six months. The stock is very volatile on the reports, could shoot up.
Rivian Automotive (RIVN) – electric car maker that surprised with its IPO in late 2021 when the company's capitalisation topped $100 billion. The company will report on Tuesday after the close – watch closely, the stock is very volatile.
Walt Disney (DIS). Suggested adding DIS to the Watchlist in September due to the long downtrend as an idea for the mid-term. The situation will become clearer on 8 November when the company shares results after the markets close.
Roblox (RBLX). The computer game developer will also report on Wednesday morning. The stock is already trading above the opening price of the previous disappointing report. We believe this is a positive buy signal.
NIO (NIO) – the Chinese electric car maker may establish a dealer network in Europe and plans to lay off up to 10% of its employees. The company will issue a report on 9 November. Whether it makes sense to use the Buy and hold strategy is for everyone to decide. The important support level is $7, the prices are quite acceptable taking into account the market recovery.
Profitable trades to everyone!
