Market review from UTEX — week 41

The US market continues to hit historic highs. Over the week, SPY gained 1.12%, Nasdaq rose 1.21%. Leading the gains were Micron Technology (+19%), Thermo Fisher (+17%), Eli Lilly (+15%), Shopify (+15%), and Merck (+13%).

Among the largest companies, only Philip Morris notably dropped (-7%). There was a lot of buzz around Elon Musk’s call to unsubscribe from Netflix. He criticized the animated series Dead End: Paranormal Park, which Musk says “pro-transgender on CHILDREN.” Netflix lost 4.73% over the week.

Bitcoin and other cryptocurrencies holders are doing well this week, with almost all rising. BTC hit a new all-time high, reaching $126,000. Currently, Bitcoin trades at $123,900 (+11% over 7 days). Ethereum gained 11% for the week, reaching up to $4,600.

On October 1, the US government shut down after Congress failed to pass a budget for the new fiscal year. The market was hardly affected. The longest shutdown in history, 34 days, occurred during Donald Trump’s first term in 2018.

ChatGPT developer OpenAI will hold its DevDay conference today. Product updates and announcements from the world's most valuable startup are expected. Amazon will hold its Prime Big Deal Days sale on October 7–8. On Thursday, Jerome Powell will speak at the Fed Bank Conference.

The most interesting reports of the week: Constellation Brands, McCormick, PepsiCo, Delta Air Lines, and Levi Strauss.

Top ideas for trading this week

🟡 PepsiCo (PEP). Report on October 9 before market open. Coca-Cola’s competitor has fallen 17% over the year. The last report beat expectations, with support at $138 and $127. It can be bought for the long term. Recommended to buy in July before the previous report, when prices were slightly better.

🔴 Quantum sector: Quantum Computing (QUBT), D-Wave Quantum (QBTS), Rigetti Computing (RGTI), and others. Since September, the sector has surged upward. The news background is positive, with some “air” entering the market. There is no clear midterm price target, but volatility is very high — strong intraday movements in either direction are possible, so it makes sense to add to Favorites.

🔴 Crypto stocks: Coinbase (COIN), MicroStrategy (MSTR), MARA Holdings (MARA), Riot Platforms (RIOT), and others. Bitcoin is at its highs. Whether it moves higher or starts a pullback, high volatility is expected in these stocks.

🟡 Helen of Troy (HELE). Report on October 9 before market open. Owner of brands like Braun, Honeywell, Osprey, etc. Since early 2022, the stock dropped from $240 to $20, a 56% decline over the year. Good short float at 14%. A decent midterm long is possible if the report surprises and investors start covering shorts. But better not to rush — stops may be triggered first and the company’s results are uncertain. Support at $20.

🟡 Constellation Brands (STZ). Producer and seller of beer, wine, and spirits. The stock fell 44% over the year, with good support at $130. Reasonable for midterm trading if it holds this level. After reports, it sometimes shows very clear intraday moves. Not every time, but it can bring the heat.

Choose what suits you best:

🔴 high risk, for the pros;

🟡 medium risk, for traders with little experience.

Profitable deals!

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