Market review from UTEX — week 22

After a strong month of gains, indices sagged a bit, with the SPY losing 2.54% and the Nasdaq losing 2.35%. 

Trump threatened Apple with 25% duties if the company doesn't manufacture iPhones in the US. The stock fell 7.5%. “I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else”, the president said. 

On Friday, Trump announced 50% tariffs for the EU, but over the weekend he settled with the President of the European Commission Ursula von der Leyen — the introduction of duties was postponed from June 1 to July 9.

Bitcoin has risen nearly 7% in 7 days. BTC is now actively testing the $110,000 mark.

There is a shortened week ahead: today is Memorial Day in the US. Friday will see the PCE, an inflation gauge closely watched by the Fed. Similar indicators show that price growth slowed slightly in April.

The most expected event is NVIDIA's report on Wednesday, May 28 after the markets close. Also of interest are the results of Salesforce, Costco, Dell Technologies and PDD Holdings.

Top 5 ideas for trading this week

🔴 PDD Holdings (PDD). Report on May 27 before the open. Chinese stocks are moving constantly right now because of tariffs, plus PDD itself is pretty volatile on reports. Could give good but risky moves.

🟡 Okta (ΟΚΤΑ). Report on May 27 after the close. A cybersecurity company. At $80–$90 was more attractive. If there's a drawdown, you can pick it up for the mid-term.

🟡 Semtech (SMTC). Report on May 27 after the close. The semiconductor component maker sagged very badly in February. Has been trying to recover ever since. Yesterday, Stifel reiterated a Buy rating for Semtech. Analysts are optimistic about the outlook for the quarter. Possibly due to comments from company executives at The Optical Fiber Communication Conference (OFC) — 2025. Pricing isn't bad.

🟢 Canopy Growth (CGC). Report on May 30 before the open. The marijuana sector has faded a lot lately. The stock is quite inexpensive, could take a shot if the report doesn't let up. 

🟡 Dick's Sporting Goods (DKS). Report on May 28 before opening. The company that bought Foot Locker recently. DKS usually does pretty well on the day of the report.

Trade what suits you best:

🔴 high risk, for the pros;

🟡 medium risk, suitable for traders with little experience;

🟢 low risk, suitable for beginner traders.

Profitable trades!

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