Market review from UTEX — week 50
Markets on hold ahead of the Fed meeting. A potential volatility spike on the horizon. 5 trading ideas inside.
The major indices ended the week higher: SPY +0.3%, Nasdaq +1%. Tech outperformed again: AppLovin +15%, Salesforce +13%, and Palantir and Oracle both +8%. On the downside were $NFLX (–6.8%) and Philip Morris (–6%).
Bitcoin is holding near $90,000, while Ethereum climbed to $3,114.
The Fed’s rate decision is coming up on December 10. Markets now assign an 87% chance of a 25 bps cut — up from 67% a month ago.
Intraday volatility typically rises ahead of Fed meetings, so caution is warranted.
Top ideas for trading this week
🔴 RH (RH). Earnings report on December 11 after the close. A large American retailer of luxury furniture. Earnings reports usually bring high volatility. A large gap is not excluded.
🟡 GameStop (GME). Earnings report on December 9 after the close. The meme stock has calmed down over the past six months, but it should not be underestimated. As always, maximally unpredictable.
🟡 Lululemon Athletica (LULU). Earnings report on December 11 after the close. A Canadian athletic apparel brand. Over the last couple of earnings reports the stock fell from $340 to $160 and found support there. Over the past month it is +13%. It may be worth considering for the medium term if it holds the $160 level.
🔴 SailPoint (SAIL). Earnings report on December 9 before the open. The company offers solutions in the area of identity and access. SailPoint went public in February; since then the stock price has been in the $15–$25 range and has not matured for a strong move even despite better-than-expected earnings reports. Maybe this time a clear move will work out.
🔴 Broadcom (AVGO). Earnings report on December 11 after the close. The report of the developer and manufacturer of chips will surely affect the entire sector. Attention will be focused on demand trends for artificial intelligence and on forecasts. Broadcom may also announce the acquisition of another large buyer of artificial intelligence chips. Judging by the latest comments, the company is in talks with three potential clients. Expectations for the report are quite high.
Choose what suits you best:
🔴 high risk, for the pros;
🟡 medium risk, for traders with little experience.
Profitable deals!
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