Market review from UTEX — week 21

All-time highs are getting closer, with the SPY up 5% for the week and the Nasdaq up +6.8%. The main gains were on Monday thanks to the tariff agreement: China reduced duties for the US from 125% to 10% for ninety days, and the US lowered duties for Beijing from 145% to 30%.

Tesla +17%, NVIDIA +16%, Palantir +10%, Taiwan Semiconductor +10% — almost everything is up. Smaller companies include CoreWeave +56%, Super Micro Computer +44%, Coinbase +33%. Dicks Sporting Goods bought Foot Locker at a premium of nearly 100% from the current price.

Meanwhile, UnitedHealth Group withdrew its full-year guidance and fell 23%. The company has come under investigation by the Department of Justice.

Bitcoin has steadily gained ground above $100,000, reaching nearly $106,000 on Sunday. BTC is now trading at $103,000.

This week's focus will be on jobless claims and housing data: existing and new home sales and building permits. The most expected reports are Home Depot, Lowe's, Target, TJX, Palo Alto Networks, Snowflake and Baidu.

Top 5 ideas for trading this week

🟡 Target (TGT). Report on May 21 after the close. Retail chain. Mid-term pricing is quite attractive. The $90 level, minus 36% for the year. Intraday volatility is traditionally good after the report. 

🔴 Snowflake (SNOW). Report on May 21 after the close. Adobe, AT&T, HP, Mastercard, PepsiCo and Yamaha use Snowflake software to store, process and analyze data. A gap up and strong intraday move is very likely, mid-term 50/50, already too far off the lows.

🟡 Baidu (BIDU). Report on May 21 before the open. China's major search engine. Very strong at the $75 level. If you want to buy into a portfolio of Chinese stocks for the mid-term, not a bad candidate. 

🟡 Zoom Communications (ZM). Report on May 21 after the close. At COVID-19, the stock was up to almost $600. Since then, it has returned to normal levels, marked support at $60, and has periodically pulled back from it. On May 7, ServiceNow announced that it will build Zoom's voice, video and chat into its AI customer experience platform as part of a partnership with Zoom. As a mid-term idea ok, but below $60 it hardly makes sense to hold.

🟡 XPENG (XPEV). Report on May 21 before the open. Chinese electric car maker. On Thursday, the company revealed the first images of the next-generation P7 sports sedan, designed by Rafik Ferrag, looks good. Trump said over the weekend that he wouldn't mind stopping by China to meet with Xi. Among Chinese electric car makers, XPENG has one of the best year-to-date performances (+150%). Mid-term only, intraday is best not even touched. 

Trade what suits you best:

🔴 high risk, for the pros;

🟡 medium risk, for traders with little experience.

Profitable trades!

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