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Momentum Monday: Don't Miss the Year End Rally

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Want to start the week ahead of the pack? Check out Momentum Mondays, where I cover the leading breakout stocks in the market, summarize the major events of the week ahead, and prepare investors for profitable trading.

Today, we will be taking a look at the broad stock market indexes to summarize the action of the last few weeks, then we will look at the economic calendar to address any market moving data coming our way. And finally, I will share three compelling technical trade setups in stocks with top Zacks Ranks.

Stocks Rally with a Vengeance

Last week, as stocks hovered at four-month lows, investors’ sentiment sagged along with it. But an incredible 6.5% four-day rally off the lows has set the record for strait about where this market wants to go.

Interest rates eased off the recent highs of 5%, unemployment rose slightly, and the Fed’s Jerome Powell delivered a more dovish speech than most had expected. This along with an extremely oversold market led to the conditions for a face-ripping short squeeze.

After such a powerful rally in such a short time I would not be surprised to see the market take a little break this week and trade sideways, but many factors are pointing to a year-end rally.

TradingView
Image Source: TradingView

Economic Calendar

It is a relatively light week regarding economic data this week, with a number of Federal Reserve officials giving speeches and a conference in DC, and Jay Powell speaking at it on Wednesday.

Most notably, Initial Jobless claims will be reported on Thursday morning. I continue to use this weekly reading as a leading indicator on the economy and labor market, and we have begun to see it start trending higher, with now two prints in a row over 200,000. This week economists are expecting 221,000.

Also of note is the busy earnings week ahead. We will get reports from Gilead Sciences, Uber Technologies, Occidental Petroleum, Disney, and many others.

The Zacks Earnings Calendar is one of the best ways to get a rundown of stocks reporting.

Technical Setups

The three momentum trading setups we are looking at this week are Nvidia (NVDA - Free Report) , Dell Technologies (DELL - Free Report) , and AppLovin (APP - Free Report) . All three have Zacks Rank #1 (Strong Buy) ratings and multiple other bullish catalysts.

Many of the stocks we have shared in past weeks have gone on to make major breakouts, so I recommend going back to other videos to understand how we analyze and trade these stocks.

TradingView
Image Source: TradingView

Bottom Line

Even the best trading setups fail, so it is always important for traders to prioritize making a trading plane, following the plan, and utilizing strict risk management protocols.

Good luck this week traders!


See More Zacks Research for These Tickers


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Dell Technologies Inc. (DELL) - free report >>

NVIDIA Corporation (NVDA) - free report >>

AppLovin Corporation (APP) - free report >>

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