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Talking now about markets.......
The main US stock indexes ended the last session of the week in the red again, at a time when investors are trying to find a balance between fears of rising inflation, lower growth and cheaper share prices after the massive drops the past four weeks. I think we are moving towards a regime in which prices will remain at a higher level for some time. Economic growth has been showing a positive trend, since with the return of normality after COVID, we are witnessing a greater dynamism characterized by an increase in consumption.
The question that is beginning to be asked is what will be the future economic performance and what growth revisions will be taken into account after the steep rise of the interest rates, which as a rule has negative consequences for economic growth. So far, the labor market remains robust. However, if economic growth slows down significantly and inflation remains high, the labor market should also be impacted.
In the current context, and after a huge drop of the main indexes YTD the market is already priced in an economic contraction. I remain in complete disagreement with the FED policy decisions. They acted late and now they want to stop the problem immediately, having a brutal impact on consumers and possibly destroying jobs that last decades to be created.
Let me share some interesting setups to follow next week.
( click to enlarge )Nio Inc (NYSE:NIO) bulls need to hold support at the 11.67 price level on a close basis next week. Breaking below it will increase chances of moving lower towards 11-10.5 area. Bulls need to form a higher low and then make another try to break the declining EMA9. There could be short-term, counter-trend movements, but for now the trend remains to the downside.
( click to enlarge )Over the past week I have been accumulating shares of Advanced Micro Devices (NASDAQ:AMD) Since the beginning of August the stock is in the midst of an amazing fall, you would have to think it will get a decent dead cat bounce at some point. Just seven days ago someone was willing to pay $70 for this stock, that same person may be willing to pay $56 for it now, which would represent a decent recovery. Looking at the chart, the daily MACD is displaying a positive divergence, meaning that despite lower lows in price action, the MACD Hist is printing higher lows, indicating that the pair could move to the upside. If the stock holds the recent lows next week, there's a good chance for a bounce-back rally in the next few sessions.
( click to enlarge )Atlis Motor Vehicles (NASDAQ:AMV) Low float stocks have been very HOT lately and this name should breakout at some point, I think it will be sooner rather than later, with a possible move coming next week. I am thinking $30 or better this time around.
( click to enlarge )Grove Collaborative Holdings Inc (NYSE:GROV) I can sense the capitulation and think that a sharp rally could follow over the next few days. At $1.6 a share, and considering this stock was trading well over $7 last month, the risk for further decline is outweighed by the potential gain an explosive bounce would provide. With Friday's closing price of $1.57, I think a quick bounce to $2.4 or better is in the cards.
( click to enlarge )Tesla, Inc. (NASDAQ:TSLA) Unfortunately, I was stopped out yesterday. The daily technical chart looks a little worrying for the bulls at this point. It's a big problem when a stock fails to regain a key level. The stock’s $204.99 close on Friday also puts it firmly below the $206 level, which is significant since it was key support for the stock in the past. I might re-enter after the earnings, but for now I prefer to stay on the sidelines.
( click to enlarge )Meta (NASDAQ:META) Another big cap that I have been accumulating recently. Although the market fell, this stock seems resilient. And resilience is one good way to know strength. Let's see if it holds the 52wk low and what next week brings us.
( click to enlarge )Wisekey International Holding (NASDAQ:WKEY) has seen a massive drop in share price. Stocks with such a big fall and great news usually have big bounces. News out from WKEY last week could help bring out the knife catchers. Revenue grew for 4 straight Quarters and the partnership with the Swiss army worth millions. The time might be coming for a big bounce. A bounce that could send this stock back over $2.5
( click to enlarge )Sidus Space (NASDAQ:SIDU) The technical daily chart shows a stock that is in a slow and steady down trend. The time for a significant bounce is near and more than likely coming next week if the market helps. On watch.
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Disclaimer : This is not an investment advisory, and should not be used to make investment decisions. Information in AC Investor Blog is often opinionated and should be considered for information purposes only. No stock exchange anywhere has approved or disapproved of the information contained herein. There is no express or implied solicitation to buy or sell securities. The charts provided here are not meant for investment purposes and only serve as technical examples. Don't consider buying or selling any stock without conducting your own due diligence.
Thanks for visiting AC Investor Blog.
AC
