Market review from UTEX — week 14
The market is chattering up and down. New tariffs are on the way.
Last week started off very well, with the SPY and Nasdaq adding 2% each on Monday and Tuesday. But over the next three days, they lost all the growth and closed in the negative. As a result, the Nasdaq fell by 2.5% and the SPY by 1.5%.
Negative sentiment intensified after Donald Trump announced on March 26 that he would impose tariffs of 25% on all cars and some auto components imported into the country. Duties on copper are also expected to be imposed in the coming weeks.
The technology sector is leading the fall: Broadcom (-11%), Oracle (-7%), NVIDIA (-7%), Taiwan Semiconductor (-6%), Alphabet (-6%).
Bitcoin is trading at about the same levels as a week ago — between $80,000 and $90,000. It's now in around $83,000.
On Wednesday, expect Trump's announced “Liberation Day” when tariffs will be announced and details will be known. Friday will see the release of the March labor market report.
The general mood in the market is one of total uncertainty. There is no panic, but there are no buyers in sight yet.
Top 5 ideas for trading this week
🔴 RH (RH). Report on April 2 after the close. Home improvement retailer. The stock traditionally moves strongly after the report, there could be a gap up and a nice intraday move.
🟡 nCino (NCNO). Report on April 1 after the close. Fintech, 2020 IPO. Like many 2020–2021 IPOs, the stock sagged badly after going public. There was a slow turnaround in mid-2023, but the latest report didn't convince investors — minus 18% for the quarter. There could be surprises, both beyond the plus sign and minus.
🔴 UniFirst (UNF). Report on April 2 before opening. Unifirst is a manufacturer and seller of uniforms. Last week it was reported that their competitor Cintas had abandoned plans to take over the company. The deal was expected to be worth $5.3 billion. UniFirst shares fell 12%. If the report is weak, the fall could continue.
🟡 Guess (GES). Report on April 3 after the close. The apparel, footwear, and accessories brand. The company has more than 1,500 boutiques worldwide. The stock has folded from $30 to $10 over the past year. Short Float 32% hints that if the shorts are covered, a nice bounce is possible. However, remember that Kohl's (KSS) had a similar chart and a high Short Float, but nothing prevented the stock from falling another 20%. A lot depends on the report.
🟡 Lamb Weston (LW). Report on April 3 before the open. One of the world's largest producers of frozen fries. Over six months -50%, a strong support level at $50 that the stock usually rebounds from.
Trade what suits you best:
🔴 high risk, for the pros;
🟡 medium risk, for traders with little experience.
All tickers are already in the Hot on UTEX. Profitable trades!
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