Market review from UTEX – week 27

Bitcoin has pushed off the bottom. A short week ahead. Top 5 ideas for trading.

The main US indices remained at the same levels as a week ago. Among large companies Tesla added the most, +8%. FedEx (+18%) and Carnival (+16%) showed good movements on the reports. Nike surprised with a 20% drop.

Bitcoin found a local bottom at $58,500 and pushed off from it. BTC is now trading at $62,600. 

On Tuesday, Fed Chairman Powell will speak during the market's opening hours, and on Friday the unemployment data for June will be released.

The week will be short – July 4 is Independence Day and exchanges will be closed. The market is unlikely to see increased trading volumes and strong moves. Wednesday, July 3, is a shortened day, with markets open until 13:00 NY. Close positions in time, unless you plan to go overnight.

In the middle of July a new reporting season will start – most of the largest US banks will report. In the meantime, there is time to analyze your trading: examine profitable and losing trades, compile statistics, sort out mistakes and draw conclusions. 

We recommend to keep away from active trading and be selective. Traditionally, we have picked 5 most interesting ideas.

Top 5 stocks to trade

MSC Industrial Direct (MSM). Reporting July 2 before the open. Industrial equipment distributor. Shares sagged nearly 20% in the quarter, and the company gave a weak earnings forecast on June 14. Barring any surprises, a short is more likely here.

Constellation Brands (STZ). Reporting July 3 before the open. Manufacturer of beer, wine, and spirits. The stock's growth has slowed over the past 5-6 years, with little change in price over the year. Sometimes moves nicely intraday on a report.

Coinbase (COIN). Since mid-March, shares of the cryptocurrency exchange have been in a range. If strong buying starts in bitcoin and altcoins, COIN may also come to life. There is good support at $200, we can push off from that. This is more of a mid-term idea for those who believe in the continued growth of the cryptocurrency market.

Radius Recycling (RDUS). Report on July 2 before the open. Steel and scrap metal recycling company. Minus 50% in six months, $14 support, $22–$24 target. Mid-term if support doesn't break down.

Tesla (TSLA). Tesla rose nicely for the week, but the company remains the worst in the top 50 by capitalization over the past six months. Minus 25%. On Friday, the stock tested the $200 mark for the first time since March, but has yet to close above that level. Good volatility is possible if it consolidates and tries to go higher.

Good trading!