Weekly Wealth Trends: Ways to capture this week's key trading opportunities?

Hello, Tiger Friends!

This week might be the most thrilling of the latter half of the year. The U.S. presidential election has reached a critical juncture, coupled with earnings reports from the five major tech giants and the VIX soaring above 20, suggesting significant market volatility. How can we enhance our trading success rate this week?

Ⅰ.Trading opportunities and risks

A. Trading Opportunities

1. Tech Stocks

• $Advanced Micro Devices(AMD)$ and $Alphabet(GOOG)$ AMD released its earnings on Tuesday, projecting Q4 revenue around $7.5 billion, falling short of analysts' average estimate of $7.55 billion, marking a 22% year-over-year decline. Although AMD anticipates gains from the AI sector, its Q4 forecast remains pessimistic, leading to a 7% post-market drop.

• In contrast, Google’s earnings exceeded expectations. Alphabet’s revenue growth outpaced forecasts across major segments, including YouTube ads and cloud services fueled by AI, which led to a post-market surge exceeding 6%.

• Here are additional tech stocks to watch:

  • $Microsoft(MSFT)$ : Investors are cautious due to increased capital expenditure, uncertainties around OpenAI, margin pressure, and the Copilot product. Although AI has driven volatility in tech stocks since ChatGPT's debut, the profitability of these investments remains uncertain.

  • $Meta Platforms, Inc.(META)$ : Meta is expected to report revenue between $38.5 billion and $41 billion for Q3, with analysts predicting strong ad revenue growth fueled by AI-enhanced ad placements. Meta’s strong performance may continue with forecasted 25% growth in ad revenue.

  • $Apple(AAPL)$ : Wall Street analysts are divided. Bulls point to Apple’s loyal user base and growing subscription revenue, while bears argue that iPhone demand hasn’t met expectations. Apple’s valuation remains the highest among tech giants, yet revenue growth is moderate.

  • $Amazon.com(AMZN)$ : Analysts project $157.34 billion in revenue, with an EPS of $1.34. Key points include AWS growth, profit margins, capital expenditure, and U.S. retail profit. The Bank of America Securities foresees “mixed results,” with AWS potentially outperforming.

  • $Intel(INTC)$ : Analysts have low expectations, but Intel could exceed them, especially if it unveils strategic initiatives like selling Altera or Mobileye. The company’s low valuation suggests a potential recovery.

2. Trump Trades

Aside from tech earnings, “Trump Trades 2.0” is a major market theme this week.

• Cryptocurrency: Bitcoin is viewed as a “Trump trade,” given Trump’s favorable stance on crypto. Spot Bitcoin ETFs have attracted $3.1 billion in net inflows this month, with option traders betting Bitcoin may reach $80,000 by November’s end.

• DJT & Tesla: Stocks linked to Trump and political contributions, like DJT and Tesla, have surged. However, the election premium might be fading, signaling caution for high-risk traders.

3. Gold:

Amid earnings reports and election risk, gold has climbed to new highs, as risk-off sentiment favors the metal.

B. Risks

1. Tech Earnings Miss & Overvaluation If any of the five giants fail to meet expectations, high valuations could lead to declines, as seen with AMD’s post-earnings dip.

2. Election Surprises Potential black swan events related to the election could further shake markets.

Ⅱ.This week’s target investments

• Tech Stocks

  • ETF

    • Nasdaq 100 ETF ( $Invesco QQQ(QQQ)$ )

    • Nasdaq 3x Bear ETF ( $ProShares UltraPro Short QQQ(SQQQ)$ )

    • Nasdaq 3x Bull ETF ( $ProShares UltraPro QQQ(TQQQ)$ )

    • 2x Nvidia Bull ETF ( $T-REX 2X LONG NVIDIA DAILY TARGET ETF(NVDX)$

    • 2x Meta Bull ETF ( $GRANITESHARES 2X LONG META DAILY ETF(FBL)$ )

• Trump Trades

  • ETF

    • Bitcoin ETF ( $iShares Bitcoin Trust(IBIT)$ )

    • 2x Tesla Bull ETF ( $Direxion Daily TSLA Bull 2X Shares(TSLL)$ )

    • GOP Trade ETF ( $Unusual Whales Subversive Republican Trading ETF(KRUZ)$ )

• Gold and Other Safe-Haven Assets

  • ETF

    • Physical Gold ETF ( $Goldman Sachs Physical Gold ETF(AAAU)$ )

These are this week’s key investment and trading opportunities. Share your thoughts in the comments!

Risk Disclaimer: The above-listed securities are based on data-driven assessments and do not constitute any investment advice.