Top Trade Ideas - May 27th
Top Trade Ideas - May 27th
A new week brings new ideas to the markets.
In G10 FX, we had a quiet week. FOMC minutes told us nothing new, and UK inflation data ultimately showed us that monetary policy easing is coming soon. Another quiet start to the week is expected with US Memorial Day and the UK bank holiday.
The week ahead sees US GDP on Thursday and EZ CPI on Friday.
Most equity indices pulled back last week, with the S&P 500 briefly setting a new high before doing so. India’s Nifty 50 had a strong week, rising past a twice-tested level of 22,800 to new highs.
Oil continues to stay in range, with crude around $77-$80. PMs fell last week, but this may open up some opportunities to get long on a move that has been non-stop.
That’s our brief overview. Let’s now get into the specifics. The usual structure follows below. The team shares 10 ideas across equities, FX, commodities and indices.
Equities
Solar names have been very strong of late, with First Solar leading the way, up 40% last week. When looking around for a related name that has the potential to tap into the sector strength, Maxeon Solar Technologies (NASDAQ: MAXN) looks good. At $150M market cap, the name can move quickly.
MAXN has also had recent strength, up 70% from April lows. Any continued momentum and we could see this move back towards early Q1 levels.
TRADE IDEA - MAXN SOLAR PLAY
Entry: 3.05
Stop Loss: 2.50
Take Profit: 4.50
Copper was one of the best-performing assets this year, but we did see selling pick up last week as a move corrected from an overextension. Is this the end for copper? Not at all. You can read our research about the metal here.
Looking at Southern Copper (NYSE: SCCO), the pullback last week offers a long opportunity on the recent trend. We like the r/r here on a name that we believe will continue higher in the following months.
TRADE IDEA - SCCO WITH THE COPPER PULLBACK
Entry: 117.60
Stop Loss: 111.00
Take Profit: 129.95
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Our next trade idea turns to uranium…