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Monday Momentum: 3 Stocks Pulling Back in an Uptrend

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Want to start the week ahead of the pack? Check out Momentum Mondays, where I cover the leading breakout stocks in the market, summarize the major events of the week ahead, and prepare investors for profitable trading.

Today, we will be taking a look at the broad stock market indexes to summarize the action of the last few weeks, then we will take a look at the economic calendar to address any market moving data coming our way. And finally, I will share three compelling technical trade setups in stocks with top Zacks Ranks.

Earnings Season Begins

Something I forgot to mention in this morning's video is the dearth of earnings reports coming out this week. Earnings season begins in earnest this week and will be of critical importance to the market action this week.

Notable earnings this week are Bank of America BAC and Goldman Sachs GS on Tuesday. Tesla TSLA, Procter and Gamble PG, and Netflix NFLX on Wednesday. Taiwan Semiconductor TSM and Philip Morris PM on Thursday. And American Express AXP on Friday.

Broad Market

Many traders ended last week fearful of what may happen in the Middle East. On Friday, the price of crude rallied 6% and equities rolled over as traders hedged. But after the weekend, these markets remain tranquil. Although many investors are discounting the conflict abroad, the market often surprises most by rallying in the face of rising geopolitical tensions.

I believe there are more than enough bullish catalysts to carry this market higher through year end. Furthermore, the spike in fear at the end of last week created an opportunity to buy leading stocks on a pull back this week.

TradingView
Image Source: TradingView

Trade Setups

This week, instead of highlighting any new trade setups, I want to focus on some of the ones from the last couple of weeks. These are still the leading stocks in the market, and now that they have pulled back, offer compelling trade setups. 

Check out the setups in Amazon (AMZN - Free Report) , Copart (CPRT - Free Report) , Dell Technologies (DELL - Free Report) , and Costco (COST - Free Report) .

TradingView
Image Source: TradingView

Bottom Line

Even the best trading setups fail. Although these stocks have numerous bullish catalysts in their favor, traders should always stick to a trading plan, and most importantly prioritize prudent risk management. Always know the maximum amount of money you can lose on a trade and respect your stop losses.

Best of luck this week!

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