Market review from UTEX — week 49

The shortened week turned out to be extremely positive: SPY rose 3.7%, and the Nasdaq 4.9%. Hopes for a Santa rally have reappeared.

The top gainers were tech stocks: Broadcom +16%, Applied Materials +14%. Alphabet and Meta each gained 10% amid reports of a multibillion-dollar AI chip deal.

Bitcoin climbed to $93,000, but overnight from Sunday to Monday it pulled back to $86,000. Ethereum also lost 5% overnight, returning to $2,840.

This week is important for American retailers: according to Salesforce, online sales for the five days from Thanksgiving to Cyber Monday will total $78 billion.

Fed Chair Jerome Powell will give a speech at 8:00 PM ET on Monday. According to CME FedWatch, the probability of a rate cut at the December 10 meeting is 87%. And only 12.6% of market participants believe the rate will remain unchanged.

Earnings season is nearing its end. This week, results will be reported by MongoDB, CrowdStrike, Marvell Technology, Okta, GitLab, Salesforce, Snowflake, Dollar Tree, Dollar General, and of course Victoria’s Secret (+100% over the past six months!).

Top ideas for trading this week

🟡 Dollar Tree (DLTR). Earnings December 3 before the open. Dollar General (DG). Earnings December 4 before the open. “Everything for a dollar” stores, competitors. They have been suggested several times for the mid-term. Current prices are no longer as attractive — the stocks have risen more than 40% over the past six months. Traditionally, they move well intraday after earnings.

🟡 GitLab (GTLB). Earnings December 2 after the close. A platform for collaborative development and DevOps. There is a basis to work from: support around $38–$40 has held for six months. If it holds, a reasonable candidate for the mid-term.

🔴 Okta (OKTA). Earnings December 2 after the close. A cybersecurity company. Decent mid-term prices, support at $70. Better not to trade intraday — usually chaotic.

🟡 UiPath (PATH). Earnings December 3 after the close. The company automates routine business processes using robots and AI agents. Potentially good mid-term prices. In October, the stock reached $18.74, now trading below $14. One of many IPOs from 2021 that have not yet fully recovered. On the other hand, +24% over the quarter. Worth watching.

🟡 Rubrik (RBRK). Earnings December 4 after the close. A developer of software for data security. The stock has pulled back 30% from its all-time highs over the past quarter, which is generally normal — the company went public only a year and a half ago. If the earnings report is solid, prices are quite attractive.

🟡 Salesforce (CRM). Earnings December 3 after the close. A provider of enterprise CRM software. In February, the stock was above $367, but since then it has entered a downtrend, reaching $220. Prices are now very interesting for the mid-term.

Choose what suits you best:

🔴 high risk, for the pros;

🟡 medium risk, for traders with little experience.

Profitable deals!

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