Market review from UTEX – week 41

S&P 500 and Nasdaq remained at the same levels as last Friday. Leaders among large companies are PDD Holdings (+14%), Exxon Mobil (+8%) and Alibaba Group (+7%). 

The Chinese rally continues, with strong gains in Futu (49%), KE (29%) and JD.com (+17%). On Tuesday, the Chinese market will reopen after a week-long vacation.   

Bitcoin has lost 5% in the last 7 days, tested the $60,000 level and pushed back from it. BTC is now trading at $62,800. 

Elon Musk promises to unveil a robot that “will be one for the history books” on October 10. Also on Thursday, the Consumer Price Index for September will be released, while Friday will see the Producer Price Index.

Expectations for the rate have changed sharply due to the unemployment statistics. In a week the probability of its reduction by 25 basis points at the meeting on November 7 rose from 46% to 97%. 

On October 11, a new earnings season will start. Traditionally, it will be opened by the largest banks. In the next month and a half we are expecting higher volumes and volatility. Stocks will move more directionally, which provides a number of opportunities for traders. Stay tuned!

Top 5 trading ideas for the week

PepsiCo (PEP). Report on October 8 before the open. For the year, the stock has stayed at the same levels, while Coca-Cola is up 27%. PepsiCo's cap is already $70 billion lower than its competitor.  It's time to catch up. The stock usually moves well intraday.

Tilray Brands (TLRY). Report on Oct. 10 before the open. It's been a long time since there have been strong moves and pumps in cannabis stocks. Perhaps it will come this time around. What else to watch for: CGC, ACB, SNDL, CRON, MJ.

Helen of Troy (HELE). Report on Oct. 9 before the opening. The company makes beauty, hygiene and home products under the Braun, Honeywell, XO, Hydro Flask, Osprey and other brands. The stock is down 40% in six months. A gap up if the report pleases investors is possible. In any case, there will be good volatility.   

Delta Air Lines (DAL). Report on October 10 before the open. The world's largest airline sagged badly during Covid-19. It's still about 30% away from all-time highs, but a lot depends on oil prices, which could rise due to the conflict in the Middle East. 

U.S. banks. Reports on October 11 before the open: the largest bank in the U.S. JPMorgan Chase (JPM), 3rd largest by capitalization Wells Fargo (WFC), Bank Of New York Mellon (BK) and investment firm BlackRock (BLK). All are up over 40% for the year, with BK adding 74%. Seems that all is too good to be true. It's been a long time since we've had negative news about strange banking schemes. We're waiting for surprises.

Also, keep an eye on Chinese companies – the rally may continue or the stocks may start to correct. 

Successful trading, everyone!