Market review from UTEX – week 51
The indices have moved in different directions, Bitcoin is trying to consolidate above $100,000 and we've got 5 ideas to trade.
Last week, the main US indices closed mixed: SPY fell by 0.5%, while Nasdaq rose by 0.75%.
On the negative side, we note Adobe's (-15%) and Oracle's (-9%) results. However, Broadcom shares jumped 25% after their report, and Tesla continued its flight: +12% for the week and already +92%!!! for the quarter.
Bitcoin is trying to firmly establish itself above $100,000, currently trading at $103,000.
On December 18, the results of the next Fed meeting will be announced. Currently, the probability of a 0.25 basis point rate cut is 96%.
Usually, the days before the rate announcement are not the best time for day trading. Volatility should drop unless significant news emerges. Plus, next week is Catholic Christmas, and most market participants will be on holiday. Keep these factors in mind and trade more cautiously.
During the week, chipmakers and crypto-related stocks are likely to become more active. But again, until the rate announcement, their movements may be very nervous and illogical.
Top 5 stocks to trade this week
🟡 Micron Technology (MU). A lagging chipmaker at reasonable prices for medium term. Earnings report on December 18 after market close. Price – $102, with two good support levels at $95 and $85. Why not add some to your portfolio?
🟡 Jabil (JBL). Earnings report on December 18 before market open. We already brought this company to your attention in September. The stock has grown 27% over the quarter and has every chance to go higher.
🟡 Nike (NKE). Earnings report on December 19 after market close. Another medium-term idea. Prices are the same as in 2019–2020. If Nike successfully resets and finds the right solutions within the company, this could be a good investment for a long-term portfolio. The stock is down 36% over the year. Support level – $70, current price – $77, historical maximum reached in 2021 – $179.10.
🟡 Carnival (CCL). Earnings report on December 20 before market open. Another stock that we recommended buying above $20 before the last report, now trading at $25.90. CCL has grown 45% over the quarter. We still believe it has more than enough potential, but we'd like better entry prices. On the other hand, in 2018 the stock traded at $70, and if looking long-term, even current prices are quite attractive for buying.
🔴 Cintas Corporation (CTAS). A provider of corporate uniforms and related services. The stock has been growing non-stop for the last ten years, so we're expecting some drama from CTAS with each report. Worth adding to your watchlist in case something goes wrong with the company.
🟡 – Medium risk, suitable for traders with some experience.
🔴 – High risk, professionals only.
Good luck trading everyone!
