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Momentum Monday: Bull Market Continues

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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 and earnings releases to address any market moving data coming our way. And finally, I will share several compelling technical trade setups in stocks with top Zacks Ranks.

Inflation Data this Week

There are a few critical data points coming out this week, but none as important as the PCE and Core PCE inflation numbers on Thursday morning. Just last week, in the FOMC minutes, Fed members noted the risks of reigniting inflation. This is a serious risk, and the data this week will be scrutinized closely by wall street.

Earnings season is near an end with Workday, Lowe's, American Tower, AMC, HP, Salesforce, TJX Companies, and Dell set to report.

Rate cut expectations have continued to fall. What was expected to be six rate cuts this year has shifted to just three over the last month.

CME Group
Image Source: CME Group

Broadening Channels

We are quite clearly amid a powerful bull market, so don’t let the doom and gloomers convince you otherwise. While this trading cycle rally, which started two months ago is very strong, it is also getting a bit long in the tooth, so a pullback could occur at any moment. But don’t let that stop you from trading some of these explosive stocks.

It is worth noting that the indexes and some of the leading stocks are building out broadening channels. This could indicate that volatility will have to fall a bit before the next leg higher comes, which may mean some sideways action in stock, although this is no guarantee.

The best bull trends happen in markets with low and falling volatility. A long grind higher is what the bulls like to see.

TradingView
Image Source: TradingView

Breakout Setups

As I go through the Zacks Rank list I am seeing many conducive trading setups. There are so many great stocks on the list that are steadily outperforming the market.

Some of the best trades I see out there include ARM Holdings (ARM - Free Report) , KKR & Co. (KKR - Free Report) , Coinbase (COIN - Free Report) , Cleanspark (CLSK - Free Report) , Cardinal Health (CAH - Free Report) , and Manhattan Associates (MANH - Free Report) .

TradingView

Image Source: TradingView

TradingView
Image Source: TradingView

Bottom Line

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

Good luck this week traders!

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