Market review from UTEX — week 42

SPY and Nasdaq corrected quite a bit last week — down 2.42% and 3.47% respectively.

The main drop happened on Friday when Trump announced additional 100% tariffs on China starting November 1. Export controls on any critical software also begin that day. China said it will respond with countermeasures if necessary and is not afraid of a trade war with the US.

Alibaba Group (-15% for the week) and ASML Holding (-9%) fell the most. Ferrari dropped 21% after its forecast showed much lower electric car production than expected through 2030. Advanced Micro Devices (+30%) surged on partnership news with OpenAI.

The crypto market experienced real drama. After the tariff announcements, everything crashed. Overnight on October 11, Bitcoin plunged to $102,000, and Ethereum dropped from $4,400 to $3,435. Some of the top 100 cryptocurrencies by market cap, including Toncoin, saw drops as deep as 80% at times. Liquidations on crypto exchanges exceeded $19 billion in 24 hours.

Cryptocurrencies are now trying to recover from the fall, bouncing off lows. BTC trades around $113,500, down 7% over seven days, ETH around $4,070, down 11% over seven days. After such a strong correction, elevated volatility is expected in both markets.

The new earnings season starts this week. The largest US banks will report first, as usual. We are closely watching results from J.P. Morgan, Johnson & Johnson, Wells Fargo, Goldman Sachs, BlackRock, ASML Holding, Abbott Laboratories, Taiwan Semiconductor, and American Express.

Top ideas for trading this week

🔴 ASML Holding (ASML). Report on October 15 before market open. Chip production equipment maker. For fans of expensive volatile stocks. In the last three days alone, ASML moved 110 points. A strong gap on the report and intraday moves are possible.

🟡 Fastenal (FAST). Report on October 13 before market open. Large distributor of industrial and construction products. Usually among the first to report, so many day traders have it on their watchlist. Not much will happen on the report, but it usually trades reasonably. Not great for the midterm; prices are far from support.

🔴 Domino’s Pizza (DPZ). Report on October 14 before market open. Another very unpredictable and volatile stock. The last three reports went without the typical gaps and moves it shows. Expect strong volatility.

🟡 JPMorgan (JPM). Report on October 14 before market open. The largest bank in the US. There haven’t been strong moves or significant news in this sector for a while; most banks are at their highs. It’s a tough sector for trading but important for economic insight. JPM’s report may show some negativity. Goldman Sachs can also be added to Favorites — a pricier stock with a more visible reaction.

🔴 Crypto stocks. We anticipated elevated volatility here. On Friday, these stocks didn’t react immediately, but movements could come during the week. Coinbase (COIN), Strategy (MSTR), MARA Holdings (MARA), Riot Platforms (RIOT), and others.

🟡 Bonus: J.B. Hunt Transport (JBHT). Report on October 15 after market close. The freight carrier showed steady growth for 15 years, which stopped in early 2024. The stock started having problems, dropping from $220 to $125, where it found support. Potential midterm opportunity if it holds the level.

Choose what suits you best:

🔴 high risk, for the pros;

🟡 medium risk, for traders with little experience.

Profitable deals!

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