Market review from UTEX — week 44

By week’s end, major U.S. indexes returned to historic highs. SPY gained 1.96%, Nasdaq rose 2.16%.

Strong earnings and gains were in RTX (+13%) and IBM (+13%). Shopify (+9%) and Advanced Micro Devices (+9%) continue to rise. Among the losers is Netflix, down 9% after its report.

Bitcoin gained 4% over seven days, currently trading around $115,000. Ethereum rose 3%, trading just above $4,100.

Most likely there will be no 100% tariffs on Chinese goods. On Thursday, Trump will meet Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) leaders’ summit in South Korea.

Treasury Secretary Scott Bessent said that he's reached a “substantial framework” for trade talks between the U.S. and China. He also thinks China would offer “some kind of deferral” on rare earth export controls. While flying from Malaysia to Japan, Trump said “I think we're going to come away with a deal”.

The Fed rate decision will be made Wednesday. According to CME FedWatch, the probability of a 25 basis point cut is 96.2%. After the rate announcement, Powell will hold a press conference and comment on the overall economic situation.

The week will be busy — earnings reports will come from Apple, Microsoft, Meta, Amazon, Google, Exxon Mobil, Visa, UnitedHealth Group, Caterpillar, Boeing, and Eli Lilly.

Top ideas for trading this week

🔴 Seagate Technology (STX). Report on October 28 after market close. The data storage company, which produces hard drives and disk drives, has seen its shares rise 183% over six months. There is a lot of “air” in the price, so there could be a gap and strong intraday movement in either direction. Western Digital (WDC). Report on October 30 after market close. The same sector with similarly impressive growth, +217% over six months.

🔴 Reddit (RDDT). Report on October 30 after market close. One of the most volatile stocks on the market, for lovers of expensive volatile stocks.

🟡 Twilio (TWLO). Report on October 30 after market close. Developer of cloud platforms for customer engagement. From mid-2021 to early 2023, the stock dropped from $400 to $50 and then stayed in a range for a long time. The first wave of growth since November 2024 was followed by a pullback. It seems a pattern for a new wave is forming. The main thing is that the report does not disappoint. A midterm attempt is possible, with support at $90.

🔴 Strategy (MSTR). Report on October 30 after market close. The largest corporate Bitcoin holder. Coinbase Global (COIN). Report on October 30 after market close. The largest cryptocurrency exchange in the US. Stocks directly related to cryptocurrency are always expected to have increased volatility.

🟡 Illumina (ILMN). Report on October 30 after market close. Biotech company — developer, manufacturer, and seller of equipment for genetic variability analysis. The stock reached $500 in 2021 but hit a local bottom at $70 by April 2024. A slow uptrend of +30% has formed over the past six months. If the stock remains within the uptrend, a midterm attempt is possible. The nearest support is $90.

Choose what suits you best:

🔴 high risk, for the pros;

🟡 medium risk, for traders with little experience.

Profitable deals!