Market review from UTEX – week 40

The main indices closed slightly down again. There was a rebound on Thursday and Friday, but the downtrend that has been in place since the beginning of August is still in place.

In the coming week there will be a lot of speeches of the Fed members, on Friday the labor market data will be released. 

October is traditionally a good month for trading. We believe that it will not let us down this time, especially since the autumn earnings season starts in the middle of October.

This week's top 5 stocks

Constellation Brands (STZ). The maker of beer, wine, and other spirits has been trading above the principle $250 per share mark for the past couple of months. The company will release a report on Thursday before the markets open. If it keeps the level, it could go higher.

RPM International (RPM). One of the world's leading manufacturers of sealants, coatings, and building supplies will release its results on Wednesday before the open. The company is showing good volatility on the reports. All eyes are on the all-important $93 level! It was the upper end of the range from January to August, now it is support. Anything above the level is a long, below it you can try to short. 

McCormick & Co (MKC). The world's largest spice supplier has been in downtrend for the last three months. The principal support level is $70. Prices are already acceptable for medium-term purchases, but it is better to wait for the report, which will be released tomorrow before the opening. If the figures please the market, there are all chances for a new uptrend. If not, be careful with shorts, there is a very strong support below.

Lamb Weston (LW) is a large producer of frozen french fries, waffle fries, and other potato products. The company will share results on the morning of 5 October. The normally low-volatility stock rocked on the last report. Now the situation is similar to MKC and RPM: there's a $90 level, that's what we're strategizing around.  

ConAgra Brands (CAG), for fans of slow mid-price range stocks. The big food company will also report Thursday before the open. The stock has been in a tight downtrend since the beginning of the year, it needs a very good report to turn around.

Profitable trades everyone!