Weekend Wall Street #40 - Fed Rates, Earnings Season, May, and Trade Ideas (5/1-5/7)
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Good evening traders. This is going to be the first week of May as we get closer to the summer trading season and things may start to become smoother for us here in the market. Also - will “sell in May and go away” be true this year or not?
My picks from my last article performed very well on Friday:
HTCR was up around 10% and BAOS was up nearly 70% in one single trading day. These under the radar plays did not move until later in the day giving everyone time to enter.
Last week was a huge week for earnings for large and mid cap companies. Earnings and future plans are (in my opinion) one of the most important factors for any stock and their performance for the next quarter. For example - I will try to never buy a company that has dropped on bad earnings unless I think the market has overlooked something and it will help the company later.
This week, Apple, the largest holding in the S&P 500 is reporting earnings and as many say: where Apple goes, the market goes. Results were optimistic despite Wall Street pessimism last week from other large tech names, including Microsoft and Meta. For Apple results, I’m going to be focusing on how they’re handling China demand as I do think there is still a lot of opportunity in the China sector. In fact, the Chinese EV companies are reporting delivery numbers on Monday, and if they are good I expect those stocks to run. Piper Sandler states that the iPhone remains popular among teens, and Morgan Stanley expects continuation to their $180 price target.