Market review from UTEX – week 38
Waiting for the Fed meeting. The surge in chipmakers and a second attempt on Trump's life. A pick of 5 trading ideas!
The S&P 500 is again trading near its historical highs: last week the index added 4%, the Nasdaq +6%! Chipmakers set the tone: Broadcom (+22%), NVIDIA (+15%), Advanced Micro Devices (+13%), TSM (+10%). Thanks to cloud technologies, Oracle reported well, the company closed the week at +14%.
Bitcoin added 6% in 7 days, BTC is now trading at $58,700.
On Sunday, there may have been a second assassination attempt on Trump in two months. Secret Service agents opened fire on a man armed with an assault rifle at a golf course in Florida.
The main event this week will be Wednesday's Fed rate decision. For the first time in four years, the regulator will begin easing monetary policy. In early September, the probability of a rate cut by 0.5% was 30%. After the inflation data released last week, this probability rose sharply to 58%.
August retail sales data will be out on Tuesday before the market opens, followed by home sales and unemployment data on Thursday.
Traditionally, the last few days before the rate announcement are not the best days for daytrading. We advise you to be careful and selective.
Top 5 ideas for the coming days
FedEx (FDX). Report on September 19 after the close. The company provides postal and courier services. FDX is gradually approaching its all-time highs at $320. There has been a strong gap down in the past 3 reports, so we don't recommend overnight. Intraday volatility after reports in FDX is good.
Lennar (LEN). Report on Sept. 19 after the close. The second largest construction company in the US. The entire sector is storming to all-time highs. Almost all of the top 10 companies are up 50-90% year-to-date. It begs the question – when is the correction?
Darden Restaurants (DRI). Report on Sept. 19 before opening. Multi-brand restaurant operator. The stock is trading at roughly the same levels as a year ago. The last few reports have been in line with analysts' expectations. It would take a surprise to one side or the other to rock this boat.
General Mills (GIS). Report on Sept. 18 before the open. The food manufacturer. The stock found support at $60 in October 2023, tested it several times, and entered an uptrend after the July report. Intraday trades poorly, more of a mid-term idea.
Chipmakers. The most volatile sector on the market. The industry's reaction to the rate announcement and Powell's comments is very interesting.
Profitable trades!
