Top Trade Ideas - March 12th
Here are our best ideas for the week ahead across equities, currencies, indices and commodity markets.
A month after the previous inflation report caused a stir in the stock market, investors are bracing themselves for the release of the latest data on Tuesday.
There have been warnings about the stock market being overbought after it has surged by almost 35% since the beginning of last year. Michael Hartnett, who works at Bank of America Corp, believes that equities are displaying “abnormal gains” in “abnormal times.” This has resulted in stretched and extended positions just before expectations of an eventual rate cut.
There are lots of ideas for this week. Let’s get started.
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Equities
Tesla (NASDAQ: TSLA) has been a weak stock this year, down nearly 30%. If the market pulls back (inflation data mentioned in the intro), Tesla stands out as a top short among the large-caps.
A move back down to our key level of 152-167 is what we’re watching for. That doesn’t provide a lot of room, so we’ll keep a tight stop and use it as a data trade on Tuesday.
TRADE IDEA - TSLA SHORT
Entry: 175.00
Stop Loss: 185.00
Take Profit: 155.00
Alphabet (NASDAQ: GOOG) provides a technical setup for another trade this week. 139 was a level of resistance before the break higher in December last year. It then proved to be support this year. These recurring pivot levels are good to note down. We also see a rejection on Friday’s price action at this same level. We’re going short towards 128.
TRADE IDEA - GOOG SHORT
Entry: 136.00
Stop Loss: 141.00
Take Profit: 128.00