Next Day Prep: Powell’s Press Key Takeaways for Traders
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Market sentiment was subdued today as investors await the Federal Open Market Committee (FOMC) decision tomorrow. The focus is on the potential rate cut and Fed Chair Powell’s press conference for market direction.
Overnight Headlines
- Strong Retail Sales up 0.6%, indicating consumer spending resilience.
- Cyclical sectors like Energy and Consumer Discretionary saw movement, signaling a potential risk-on sentiment post-Fed meeting.
Economic Announcements
The FOMC decision on the 25-basis point rate cut is highly anticipated, with attention on the updated Summary of Economic Projections and Powell’s press conference.
Earnings Highlights
- PLAY (Dave & Buster’s): Down nearly 17% after earnings miss, new CEO optimistic about turnaround.
- HIMS: Dropped 6% due to FDA warning; WBD: Downgraded, highlighting acquisition concerns.
Top Movers
- AVAV: Aerospace and defense stock showing strength, watch for breakout above 264.50.
- BABA (Alibaba): Potential breakout over 163.50 for a move towards 165.
Quick Trade Ideas
- NVDA (NVIDIA): Volatility squeeze setup, watch for break above 176 for a run towards 178.50.
- IONQ: Quantum computing play with breakout potential over 62.50 for a significant move higher.
Key Takeaway
Market anticipates Fed’s rate cut decision, with sectors signaling risk-on sentiment. High-conviction trade opportunities include AVAV, BABA, NVDA, and IONQ for potential breakout trades.