Market review from UTEX – week 46

One of the craziest weeks is over: euphoria in the markets, incredible volatility and trading volumes. The S&P 500 added 4.75%, the Nasdaq more than 5%. 

Trump won, the rate was expectedly lowered by 0.25%.

Bitcoin broke an all-time high after Trump's victory, reaching $82,200!

Moving on to stocks. The pre-election support paid off in full: Ilon Musk's Tesla shares rose 30% over the week.

Reports that really surprised us:

• Applovin +77% for Thursday and Friday,
• Upstart Holdings +67%,
• Tempus AI +60%, the stock rose steadily all week after the report,
• Coinbase +48% – expected after Trump's win, but the growth is still impressive.
• Palantir +39%. Give a pullback for a buy, please!

Chinese stocks and clean energy companies sagged.

About 95% of the companies in the S&P 500 have reported, but volatility will remain high. Investors will be looking for the right sectors to buy. Something remained undervalued under the Democrats, some stocks are overbought on the hype, and there will be profit taking here. Fed rate forecasts and economic data will fade into the background for a while.

Top 5 stocks to trade in the coming days

🟡 Shopify (SHOP). Report on Nov. 12 before the open. One of the main beneficiaries of the 11/11/2024 selloff. Wouldn't be surprised to see the stock go into a nice plus after the sales data is released. Whether to buy in advance is the big question.

🔴 Spotify Technology (SPOT). Report on Nov. 12 after the close. Year-to-date +135%. It looks like a correction might be imminent, but it's not a sure thing. We forecast a big gap and a strong intraday move.

🟡 Cisco Systems (CSCO). Report on Nov. 13 after the close. Up +30% for the quarter, but prices are still at 2019 levels. Potentially very interesting for the mid-term.

🟡 Walt Disney Company (DIS). Report on Nov. 14 before the open. While Netflix is storming to all-time highs, Disney is trying to rebuild its business. Fact – Netflix's capitalization is already nearly double Disney's! The company of our childhood was never able to reinvent itself in time for modern times (take Star Wars and what happened to it after Disney bought it). Nevertheless, we think the company is slowly coming out of its slump and prices are attractive enough for the mid-term.

🟡 Alibaba Group (BABA), report on Nov. 15 before opening; JD.com (JD), report on Nov. 14 before opening; and NetEase (NTES), report on Nov. 14 before opening. China's long-suffering companies. Just hinted at a rise in a few years, but then Trump came back with his anti-China policies. It will be very interesting to see if investors will get nervous and want to get rid of these companies' stocks all at once. We do not recommend mid-term trading. For those who are already in positions, it is worth considering how long you are willing to wait until the stock starts to grow. 

Profitable trades!