Market review from UTEX – week 22

The market is closed today – Memorial Day. 

Last week the main US indices closed in a symbolic plus. The main story is NVIDIA. The company is taking the maximum from the AI boom: net income grew by 628%, revenue – by 262%! NVDA stock hit new highs and surpassed $1,000 per share for the first time. The company also announced a 10-to-1 split that will happen on June 7. The stock added 15% for the week. 

Qualcomm (+8%), PDD Holdings (+7%) and Taiwan Semiconductor (+7%) also posted notable weekly gains.

Another historic event took place in crypto – on May 23, SEC approved spot Ethereum-ETFs. Information about the imminent approval appeared on May 20. Then ETH grew from $3,000 to $3,700 in a day. Now Ethereum is trading at $3,900. Meanwhile, meme-coin PEPE shot up 75% in a week and entered the top 20 cryptocurrencies by cap. 

Picked the top 5 ideas for trading.

Salesforce (CRM). Reporting on May 29 after the close. Provider of enterprise software for customer relationship management. Strong support level at $265, below could be a good short. 

Okta (OKTA). Reporting on May 29 after the close. Provider of identity solutions for companies. Gave this idea in November with a focus on strong support at $65. Since then, the stock has gotten close to $115. Now has pulled back from the highs and is trading around $100. Long with support at $90. 

Dell Technologies (DELL). Reporting on May 30 after the close. Software developer and IT hardware maker. Fantastic +250% year-to-date growth. Hard to predict if there will be profit taking, but definitely worth watching. 

Dollar General (DG). Reporting on May 30 before the open. An “everything-for-a-dollar” retailer. Strong support at $135–$140 to push off of. The stock usually moves well on reports. 

UiPath (PATH). Reporting on May 29 after the close. Business automation platform. Shares were at $80 in 2021, now at $19. Support $17–$18. Maybe try for a midterm if it's in the plus side after the report.

Profitable trading!