Market review from UTEX – week 50

• The Nasdaq beat the S&P 500 by a wide margin last week: +3.28% vs. +0.86%. For the year, the indexes have added +36% and +33%, respectively.
• Tesla is up 11%, Broadcom is up 10% before the report, Taiwan Semiconductor +10%, Salesforce +9% after the report, Amazon added 9%.  
• Bitcoin broke through $100,000 and almost reached $104,000, but then plummeted sharply to $91,500, collecting the stops of those building up leveraged BTC positions. Bitcoin is now consolidating near the $100,000 mark.
• Ethereum, meanwhile, has tested the $4,000 mark. But most surprising is XRP, which added 36% during the week and came in third in capitalization among all cryptocurrencies.
• On December 18, the Federal Reserve will meet. The probability that the rate will be cut by 25 basis points is now 86%. On Wednesday and Thursday, important inflation data for November will be released that could change that. 

Top 5 stocks to trade this week

RH (RH). Reporting Dec. 12 after the close. We see RH reporting – imagine the 10 percent gap-up that the home goods retailer has gotten traders accustomed to. And then some sideways movement as well. For fans of expensive and strong stocks.

Oracle Corporation (ORCL). Report on Dec. 9 after the close. One of the largest software developers and server hardware vendors. Suggested buying above $117.50 in March. Those who heeded got a good profit in the medium-term position. The rest should wait for a good drawdown. We don't offer intraday, usually everything is complicated in ORCL, it's better not to waste time. If there will be a big gap down, you can buy for the mid-term.

G-III Apparel Group (GIII). Report on Dec. 10 before the open. The company makes and sells women's and men's apparel. GIII is trading at about the same levels now as it was a year ago. There's good support at $28, and there's a strong resistance level at $36. It's a good one to try in the mid-term, and for those who trade intraday, add it to your favorites.

Adobe (ADBE). Report on Dec. 11 after the close. Developer of Acrobat, Photoshop and dozens of other popular programs. The company is actively integrating generative AI into all of its products, and recently launched AI video processing tools. For the year, -7%. Given the strength of the market, prices aren't bad right now. 

GameStop (GME). Report on Dec. 10 after the close. We simply can't go by the most famous meme in the market. On Thursday, Keith Gill aka Roaring Kitty posted a tweet again: a mockup of a Time magazine cover with a computer screen. Apparently, this is an edited cover of the December 25, 2006 issue, when “You”, i.e. the American public, was named “Person of the Year”. No one understood what Keith was trying to say, but GameStop stock shot up 14% and caused a trading halt due to volatility. We can't predict what the stock will do after the report, but there should be volatility. 

Bonus! Dave & Buster's Entertainment (PLAY). Report on Dec. 10 after the close. Restaurant and entertainment business, with over 200 locations open to date. Gave this stock in September before last report. +15% for the quarter, prices still reasonable. Support at $30, up to $70 in April 2024. Risk-reward is good enough. 

Have a good trade!