Market review from UTEX – week 49

Despite a shortened Thanksgiving week, major U.S. indices added about 1% each. 

Abbvie and Eli Lilly rose 6%, while Rivian Automotive jumped 22% after receiving conditional approval for a loan of up to $6.6 billion from the U.S. government “to accelerate its growth and leadership of electric vehicle design, development and manufacturing in the United States.”

Meanwhile, NVIDIA sagged 5% on the rising market and Reddit corrected 10%, though the decline is minor after a three-month rise of 134%.

Bitcoin corrected to $91,000 but rebounded. BTC is now trading around $97,000 and there is a high probability that it will break $100,000 soon.

December is traditionally not a great month for trading. It should be normal until Christmas, but then volumes will drop sharply until about January 10. Major investors will be vacationing and counting profits. 

Traders often do not want to accept this situation and lose money during this period. Don't forget to readjust in time: the market is a living system.

Top 5 stocks to trade this week

🟡 Okta (OKTA). Report on Dec. 3 after the close. A cybersecurity company. The stock is trading horribly intraday. The only thing to do is either take it before the report or don't touch it at all. There is a good support level at $70. This earnings season, stocks like this are popping up pretty good. Hopefully that will be the case this time around.

🟡 Dollar Tree (DLTR). Report on Dec. 4 before opening. The “everything at a dollar” retailer. Here is the opposite situation: the stock moves quite well, but it is on the day of publication and the first 2–3 days after. Excellent for intraday trading. On the daily chart, there is a good support around $60, and it seems to be good for the mid-term. Suspicious that there is still no hint of buyers in the stock. Perhaps the bottom hasn't been reached yet. On a risk-reward basis, it looks good, but like there's a catch.

🔴 Lululemon Athletica (LULU). Report on Dec. 5 after the close. The sports apparel company. Those who traded in the noughties and tens will probably say “huh what a stock it was before it got so expensive”. Still no split. To be honest, it is not clear what to do with it, but there is a feeling that there may be surprises, for example, a big gap and intraday movement after it. For those who like pricey stocks and hot trading.

🟡 DocuSign (DOCU). Report on Dec. 5 after the close. Digital signature platform. One might say we begged everyone to buy DOCU in September and December 2023 and June 2024. Over the year +80%. We don't offer it at current prices, but if there is a 10–15% gap down, you could pick it up in your portfolio. The bigger the gap, the better.

🟢 UiPath (PATH). Report on Dec. 5 after the close. Another stock we've been offering for the mid-term for the past six months. Another 2021 IPO that is starting to come to life. Pricing is quite reasonable, $10 support. Disturbingly, the last two reports have beaten expectations by far, but the stock is only up 15% in six months. If something goes wrong, don't sit out the loss. Better to close the position below $10 or even $12. The risk-reward is good, the potential is enough, the price is inexpensive – it's worth a shot.

Profitable trades!