Market review from UTEX — week 11

Important: The US has switched to daylight saving time, now the market opens and closes an hour earlier.

For the third week in a row, U.S. indices closed in the negative zone, SPY and Nasdaq lost 3% each.

The downward leaders were Tesla (-10% and already -30% for the month!), NVIDIA (-10%) and Netflix (-9%). Also, the largest American banks fell down heavily: Bank of America -10%, Wells Fargo -9%, JPMorgan Chase -8%.

Alibaba stock stands out against the background of the overall market decline: over the week +6%.

On Friday, a crypto-summit was held in the U.S. White House, where no significant news was announced. Bitcoin reacted by falling, now trading at $81,800.

Wednesday and Thursday will see the release of important consumer and industrial inflation data for February.

The Fed rate meeting is 10 days away.

Top 5 ideas for trading this week

🟡 Rubrik (RBRK). Report on March 13 after the close. IPO 2024. Stood in the $28–$38 range for six months, broke through resistance in October and went to $80. Price has pulled back to $55 in the past month. Prices are tempting, but better to wait for the report.

🟡 Li Auto (LI). Report on March 14 before the open. Chinese maker of hybrid cars and electric vehicles. Chinese companies have been feeling stronger than the market lately, the stock could take a shot. For example, XPeng from the same sector is up 157% for the year, and LI Auto is still -23% over the same period, although there has been a positive trend over the last quarter.

🟡 Kohl's (KSS). Report on March 11 before the open. U.S. retail chain. Year-to-date -56%, shares have reached 2020 levels around $11. High Short Float (43%): if some sellers decide to cover short positions, there could be a strong move up.

🟡 Dollar General (DG). Report on March 13 before the open. Everything-for-Dollar Stores. Over -47% for the year, up 10% last week in a falling market. Often moves well on the report intraday. There is support in the $70 area.

🟡 DocuSign (DOCU). Report on March 13 after the close. Offered mid-term in 2023 and June 2024. Since then, the stock has rallied nicely, shooting up to $107 on the last report. Now it's back down to $77. It would be nice if the market gives even lower.

Bonus

Many companies have shed 20-30% or more over the past month. Volatility in such stocks is likely to remain high. A rebound to the upside is likely.

Here are a couple of companies to watch out for and add to your Favorites:

• BILL Holdings (BILL) -51%
• Reddit (RDDT) -39%
• Astera Labs (ALAB) -37%
• RH (RH) -36%
• Samsara (IOT) -34%
• Constellation Energy (CEG) -32%
• Tesla (TSLA) -30%
• Illumina (ILMN) -30%
• Arm Holdings (ARM) -27%
• Applovin (APP) -26%

What the yellow circle means: 

🟡 This is a medium risk stock, for traders with little experience.

Profitable trades!

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