Market review from UTEX – week 18
Positive on the market. Earnings season is in full swing. What to trade?
S&P 500 +2.5%, Nasdaq +4% for the week. Google's report made investors happy: the stock rose by 10% and the company's capitalisation exceeded $2 trillion for the first time. Tesla closed the reporting week with a 14% gain. Perhaps this is just the beginning of the growth: yesterday Elon Musk arrived in China and announced a partnership with Baidu on autonomous driving technologies.
Bitcoin rose to $66,000 last Monday, but then went into a slow downtrend and is now trading around $62,000.
The Federal Reserve will hold its next meeting on Wednesday. Obviously the rate will remain unchanged, we are waiting for Powell's comments. Friday will see the release of unemployment data for April.
The earnings season is in full swing, less than half of the companies have reported so far. This week the market will focus on the upcoming reports of Amazon and Apple.
We have selected five interesting trading ideas.
MicroStrategy Incorporated (MSTR). Report on 29 April after the close. The largest corporate holder of bitcoin. The stock price has corrected 35% from its highs over the month. Meanwhile, the stock is up 325% for the year. The direction of movement after the report is unpredictable, we expect a large gap.
Eli Lilly and Company (LLY). Report on 30 April before the open. The pharmaceutical company reached $700 billion in capitalisation and entered the market's top 10. A correction is likely even on a good report.
Block (SQ). Report on 2 May after the close. Jack Dorsey's fintech stock is up 75% in six months. In January, the company said its digital bitcoin wallet is available to Cash App users in 95 countries already. Support $65, mid-term target $100-$120.
Estee Lauder (EL). Report on 1 May before the open. Cosmetics maker. After a failed November report, the stock is in a solid uptrend, mid-term upside potential remains. Support at $135.
Advanced Micro Devices (AMD). Report on 30 April after the close. The chipmaker's shares have corrected from $220 to $145 in a month and a half. Prices are already attractive enough to buy in the mid-term. Support is at $145.
Profitable trading!
