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 look at
theeconomic calendarand earnings releases to address any market moving data coming our way. And finally, I will
share four compelling technical trade setups in stocks with top Zacks Ranks.
Uncertain First
Quarter?
In addition to a rapidly
shifting economic environment due to the transitioning interest rate policy from the Fed, US presidential
elections lead to a potentially more uncertain 2024. The first quarter has shown seasonal tendencies to choppy
action during election years.
Image Source: Carson Group
Furthermore, US equity
indexes broke down from an ascending channel on the first day of the year.
Image Source: TradingView
Reviewing Economic Calendar
Theeconomic calendaris
lighter this week, with initial jobless claims on Thursday as the main data catalyst this week.
We will also see earnings
season begin in earnest this week. Companies including Goldman Sachs, Morgan Stanley, Alcoa, and Schlumberger
report this week. However, next week is when it really get interesting, with Microsoft, Tesla, Netflix and other
major players reporting.
Considering
Bitcoin
Bitcoin ETFs finally began
trading last week, but events like this have lead to near-term tops in the past.
Image Source: Brent Donnelly
Evaluating
Technical Setups
I am favoring more defensive
stocks in this week’s edition of Momentum Monday, but still include one leading technology stock that has been
showing relative strength.
Image Source: TradingView
Final Thoughts
Even the best trading setups
fail, so it is always important for traders to prioritize making a trading plane, following the plan, and
utilizing strict risk management protocols.