Trade Buzz Fuels Big Weekly Gains for Stocks

The U.S. and China struck a conciliatory tone on trade

Aug 30, 2019 at 2:19 PM
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It was another volatile week on Wall Street, driven by an onslaught of U.S.-China trade headlines. The bulk of the price action was to the upside as Washington and Beijing struck conciliatory tones toward trade negotiations, with Friday's gains putting the Dow and S&P 500 Index (SPX) pacing for a third straight daily win and on track to snap their four-week losing streaks.

Apple, Facebook Headline Tech Rally

The tech sector saw notable gains this week, too, thanks to upbeat trade talk. Apple (AAPL) shares surged after the iPhone maker announced the date for its annual September event. Fellow FAANG stock Facebook (FB) also gained ground, rallying off an historically bullish trendline, while a reliable Microsoft (MSFT) buy signal suggests the Dow shares could be headed into uncharted territory. Not everyone got a lift from trade tailwinds, though, with Autodesk (ADSK) slumping after earnings and Cree (CREE) getting slapped with more bearish brokerage attention.

Discount Retail Stocks Soar After Earnings

Retail earnings continued to roll in during the last trading week of August. Dollar General (DG) was one of the biggest winners, rallying to a record high on Friday on a round of post-earnings bull notes. The shares of fellow discount retailer Dollar Tree (DLTR) also popped post-earnings, while a revenue beat had J.Jill stock testing support at its 60-day moving average. Ulta Beauty (ULTA), on the other hand, is headed toward its biggest one-day drop on record after the cosmetics retailer's ugly earnings report.

Short-Term Trading Ideas

Several potential trade ideas popped up on our radar this week. While one signal suggests this solar stock's calls could triple by next month, Roku (ROKU) hit a record high after Barron's said it was the "best way to play streaming." Elsewhere, bullish traders may want to consider these 25 stocks for a short-term play next week, and these S&P names could be ready to rally in September.

On the flip side, bearish traders may want to check out Mylan (MYL), which just flashed a historical sell signal. RBC, meanwhile, thinks it's time to drop outperforming Casey's General Stores (CASY).

Best Way to Trade Volatility

The U.S. stock market will be closed this Monday, Sept. 2, for the Labor Day holiday. There will be plenty of potential market-moving events in the four days that follow, including an onslaught of Fed speeches and the August jobs report.

And with the Cboe Volatility Index (VIX) set to close another week above this key level, Schaeffer's Senior V.P. of Research Todd Salamone outlined a two-step script for trading volatility, and what options players should be watching before pulling the trigger on a trade. Meanwhile, with the 2019 NFL season set to kick off next Thursday, Sept. 5, here's 10 ways to win at fantasy football and options trading.



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