If you want to get a head start on the week, welcome to Momentum Monday! Here, we’ll delve into the leading breakout stocks in the market, distill the major events of the upcoming week, and equip investors for profitable trading.
Today, our focus will be on a macroscopic view of the stock market indexes to capture the essence of the recent weeks’ action. Following that, we’ll dissect the economic calendar and earnings releases to assimilate any potential market-moving data. Lastly, I’ll unveil five compelling technical trade setups in stocks with top Zacks Ranks.
Economic Landscape: Earnings and Economic Data
This week might start with a light economic calendar, but all eyes are on the preliminary GDP on Thursday and PCE inflation on Friday – pivotal data for the Federal Reserve’s interest rate policy. With the economic growth and labor market remaining robust, the pressure to cut rates is waning. Expectations for the first rate cut at the March meeting have plummeted from 77% to just 40.5%, with the first rate cut now anticipated at the May gathering.
Image Source: CME Group
Earnings season kicks off significantly this week with reports from Tesla, Visa, J&J, P&G, Netflix, Intel, T-Mobile, Verizon, Abbott, IBM, Amex, and more.
Market Performance: Breakout Analysis
The broad market indexes are roaring with strength, exemplified by the S&P 500 breaking out from a sideways consolidation to reach new all-time highs, while the Nasdaq nears overbought levels.
Image Source: TradingView
Technical Trade Setups
In this edition, I’m unveiling five trading setups that I consider to be among the most compelling in the market. Two are growth-oriented stocks, poised to surge significantly if the market continues its strength, and two are more defensive, likely to outperform in the event of market weakness. The last setup is a trade related to Bitcoin.
Image Source: TradingView
Final Thoughts
Even the best trading setups fail. Therefore, it’s crucial for traders to prioritize making a trading plan, sticking to the plan, and employing strict risk management protocols. Good luck to all the traders this week!
Visa Inc. (V) : Free Stock Analysis Report
Johnson & Johnson (JNJ) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
