Market review from UTEX – week 38
Waiting for the Fed's decision. 5 ideas for trading now.
The Fed will announce its rate decision this Wednesday. Usually, before the meeting, the market has maximum uncertainty and reduced volatility. Therefore, we advise to be selective and cautious during the first three working days.
Top 5 stocks this week
FedEx (FDX). The famed delivery services company reports Wednesday after the close. FDX has grown from $150 to $260 for the year, profit taking is possible.
General Mills (GIS). The maker of more than 100 food brands will report Wednesday before the open. The daily chart has been downtrending for the past 4 months, during which time the company has lost almost a third of its value. Theoretically, it is not a bad point to buy in the mid-term, but it is better not to purchase before the report – there may be a gap down.
KB Home (KBH) is a top-10 construction company in the US. Last month there is a tendency to break the uptrend in the construction sector. Expect a report on 20 September after the close.
AutoZone (AZO). The auto parts maker has grown 5 times in 10 years. Report tomorrow before the open. Expect profit taking, but this company knows how to surprise. Unfortunately, the stock is not available to all traders at its price. It should be split 10 to 1, or better 20 to 1. The company itself is interesting and has good volatility on the reports.
Darden Restaurants (DRI) reports on 21 September after the close. The direction of the move is difficult to predict, it is better to go with the facts. Don't rush to act in the first half hour of trading.
Profitable trades, everyone!
