Momentum Monday: Market Outlook, Earnings, and Technical Analysis

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By Ronald Tech

Welcome to Momentum Monday, your go-to guide for navigating the week ahead in the stock market. I’ll be covering key insights into the broad stock market indexes, upcoming economic events and major earnings releases, and providing you with four compelling technical trade setups in stocks with top Zacks Ranks.

Busy Week Ahead

This week promises to be eventful, with pivotal economic reports and earnings announcements taking center stage. The Federal Reserve and Treasury will be in focus, along with major tech companies reporting earnings. As investors, we need to pay close attention.

Key economic data on Job Openings and Consumer Confidence will kick off the week on Tuesday. This will be followed by earnings reports from Microsoft, Alphabet, and AMD post-market.

On Wednesday, the release of the ADP employment report and the FOMC interest rate policy meeting will shape market sentiment. Additionally, the Treasury Department’s Quarterly Funding Announcement will be closely watched.

Thursday will bring further employment data along with earnings calls from Apple, Amazon, and Meta Platforms, formerly known as Facebook.

Market Action

After a robust upward trend in the market, we are now seeing signs of overbought conditions. The Nasdaq 100, represented by QQQ, is approaching its upper Bollinger Band, indicating a potential limit to near-term upside.

TradingView
Image Source: TradingView

Technical Setups

Considering the market’s cautionary signals and upcoming data releases, I am presenting two growth-oriented stocks and two defensive ones, all carrying a Zacks Rank #1 (Strong Buy).

First, we have Duolingo (DUOL), which has formed a descending wedge.

TradingView
Image Source: TradingView

The next technical setup is looking at Arista Networks (ANET). These two stocks are the more aggressive longs, poised to benefit from a continued market rally.

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TradingView
Image Source: TradingView

Next, we have Honda Motor Co. (HMC), breaking out from a clear bull flag.

TradingView
Image Source: TradingView

Lastly, Davita (DVA), a healthcare company specializing in dialysis treatment, has been consolidating for two months. These two stocks are positioned to outperform in the event of a market sell-off.

TradingView
Image Source: TradingView

Bottom Line

Remember, even the best trading setups can falter. As traders, it’s crucial to prioritize crafting a trading plan, sticking to it, and implementing strict risk management practices. Wishing all traders good luck this week!





Elite Stocks: Handpicked for Your Immediate Attention

Elite Stocks: Handpicked for Your Immediate Attention

The Zacks Rank #1 Strong Buys

When it comes to investing, discerning the gems from the gravel is a skill any self-respecting trader must master. In the realm of the Zacks Rank #1 Strong Buys, such gems shine resplendently. Here, out of the 220 stocks glinting under this prestigious classification, 7 have been curated for their potential to ignite early price pops. It’s as if these stocks have been shepherded from the herd, set apart for their imminent promise.

A Notable Performance Legacy

But why should investors give heed to these 7, when there’s a staggering 220 to consider? Since 1988, the entire roster has outperformed the market by over two-fold. Every year, they’ve averaged a gain of +24.0%. So, when the claim is made that these 7 are “Most Likely for Early Price Pops,” it’s not to be taken lightly. Such a statement is nothing short of a torch lighting the way in a labyrinth of investment prospects.

To read this article on Zacks.com click here.

Zacks Investment Research