Market review from UTEX – week 17

Last week the major US indices corrected significantly: SPY -3%, Nasdaq -5%. April could be the worst month for the markets in the last two years.

Among the top losers were Arm Holdings (-30%), SMCI (-20%), Tesla (-14%), NVDA (-13%), ASML Holding (-10%). The semiconductor sector sagged the most.

On Tuesday, Fed Chairman Jerome Powell said there was no further progress in the fight against inflation. Bostic and Kashkari commented that the rate may not be cut this year. 

The fourth Bitcoin's halving has arrived and there was no significant reaction. BTC is now trading at $65,800, the direction of the price is unpredictable so far. 

In the coming days, 4 giants will report: Microsoft, Google, Meta and Tesla.

Be careful at the market opening, do not make all trades in the first hour of trading. Intraday, you can always find clear patterns, place smart stops and minimise your risks. If the correction continues, you can look for shorts.

Below is our pick of trading ideas.

Tesla (TSLA). Report on 23 April after the close. The stock is down 40% over the past six months and has fallen out of the top 10 companies by capitalisation. The company is recalling 3,878 Cybertrucks because of a risk of sticking accelerator. Tesla has had to cut prices on 3 of its 5 models and cut some employees – sales are falling, competition is intensifying. Short if there are no surprises in the report. 

Meta Platforms (META). Report on 24 April after the close. Here, on the contrary, up 50% in six months and 120% for the year. The last report was fantastic across the board. But now is a good price for investors to take profits, even on a positive report. 

Boeing (BA). Report on 24 April before the open. Since the beginning of the year, the stock has fallen from $260 to $170 with almost no pullback. The company has a lot of problems, but the bottom may be near. 

Chevron (CVX). Report on 26 April before the open. The second most capitalised oil company in the US after Exxon Mobil (XOM). It's time to pay attention to this sector. Exxon Mobil has already hit all-time highs, Chevron is lagging behind. Both companies will report on Friday. 

Lam Research (LRCX). Report on 24 April after the close. Supplier of integrated circuit manufacturing equipment. Up +75% for the year, but amid challenges and declining stocks in the semiconductor sector, one of the shorting candidates.

Have a good trade!