Mid-Week Update: Why Markets are Trusting the Fed to Fix Inflation
Dear Trader,
Stock traders are back to buying even with further confirmation of US inflation from the Consumer Price Index (CPI), which was reported at 7.0% on an annual basis this morning.
This follows the confirmation hearing for Federal Reserve Chair Jay Powell who seems to have charmed Senators and the markets with his call that he’ll fix inflation without sending the US economy into recession.
Meanwhile, we are now getting into earnings reports for the fourth quarter, and most are expected to be positive, aiding many stocks’ prices over the coming weeks.
It won’t just be about what they did in the last quarter, however, but the guidance that is most important.
Amid this backdrop, our analysis and research has enabled us to put together and maintain stocks that should fare well for you at the right levels for entry on the trades.
For the latest market analysis, be sure to check out today’s session recording on our website.
Now, on to the stocks on the Watchlist this week…
Walmart Inc.
Walmart Inc. (WMT) is the massive discount retailer with expansive brick and mortar locations combined with an increasingly larger online business.
Retail demand in the US and beyond continues to be strong. And the company continues to be innovative in its supply chain operations to keep its store and warehouse shelves stocked.
We’ve made some profitable trades in the stock, and we’re back for another round.
The WMT daily time frame is in a large sideways range with the market near the bottom of the range showing signs of U-turning bullish.
The one hour time frame broke the short-term downtrend line and entered into the buy zone.
Per the Watchlist, we have a target price for WMT at $148.51.
iShares Russell 2000 ETF
The iShares Russell 2000 ETF (IWM) is the ETF that tracks the Russell 2000 Index of US listed small-cap companies and their stocks.
We have been bullish on the small-fry stocks in the US market for a while, and the market conditions recently set the trade up again for this ETF.
The IWM daily time frame is in an up channel. The market is near the bottom of the channel showing signs of pushing bullish towards the top of the channel.
The one hour time frame broke the short-term downtrend line and entered into the buy zone.
Per the Watchlist, we have a target price for IWM at $239.86.
Abbott Laboratories
Abbott Laboratories (ABT) is the Abbott Park, Illinois-based pharmaceutical and healthcare products company.
Like for others in its peer group, demand for its products is aiding sales, and the company continues to work on its pipeline of new products.
The ABT daily time frame is in an up trend. The market is at a low price hitting the up trend line.
The one hour time frame is below the short-term downtrend line.
It will be a good idea to wait for the one hour time frame to break and close above the short-term downtrend line before looking for long ideas.
Per the Watchlist, we have a target price for ABT at $140.68.
Centene Corporation
Centene Corporation (CNC) is the Saint Louis, Missouri-based healthcare services and insurance provider.
It continues to be the leader in government healthcare services and is a major provider of medicare, medicaid and government subsidized private insurance.
The CNC daily time frame is in an up trend. The market is at a low price hitting the up trend line.
The one hour time frame is below the short-term downtrend line.
It will be a good idea to wait for the one hour time frame to break and close above the short-term downtrend line before looking for long ideas.
Per the Watchlist, we have a target price for CNC at $83.16.
Silvergate Capital Corporation
Silvergate Capital Corporation (SI) is the La Jolla, California-based bank holding company.
It operates as a traditional banking company but has its real focus on providing services to the numerous technology companies in California and beyond.
With technology companies thriving, its services are in demand, aiding revenue.
And with shorter-term US interest rates set to rise to more normal levels, it should aid the banking company in improving interest margins between its liabilities (including deposits) and its assets (loans).
The SI daily time frame is in an up trend. The market is at a low price hitting the up trend line.
The one hour time frame is below the short-term downtrend line.
It will be a good idea to wait for the one hour time frame to break and close above the short-term downtrend line before looking for long ideas.
Per the Watchlist, we have a target price for SI at $184.56.
Get The Full Rundown
To get the latest updates on these stocks and the markets that you need to know about, be sure to check out today’s session recording on our website.
And to get the full rundown on all of our stocks, click here.
Keep on trading,
Josh Martinez
Editor, Burst Alerts Pro