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Momentum Monday: Earnings Season Drives Markets this Week

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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.

Market Summary

Last week, tensions in the Middle East continued to rise, leading to an increase in stock market volatility. However, the Nasdaq 100 looks like it may have found support at the lower bound of this four-month consolidation.

The slew of earnings from the Mega Cap Technology stocks such as Microsoft (MSFT - Free Report) , Alphabet (GOOGL - Free Report) , Amazon (AMZN - Free Report) , and Meta Platforms (META - Free Report)  could be the bullish catalyst that bids this market.

The major economic data releases this week include Q3 GDP and Initial Jobless Claims on Thursday morning and PCE inflation Friday morning. These three data points are critical to the Fed’s interest rate policy.

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Image Source: TradingView

Technical Trade Setups

Vertiv (VRT - Free Report) , the digital infrastructure company has a Zacks Rank #1 (Strong Buy) rating and compelling technical trade setup. If it can trade above $40 this week, it may make another bull run into year end.

TradingView
Image Source: TradingView

Bitcoin has quietly rallied 100% YTD, and Coinbase (COIN - Free Report)  has performed well in synchrony. Coinbase has a Zacks Rank #2 (Buy) rating, and convincing technical setup. If the stock can trade above the $77.50 level, it would signal a breakout.

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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