To The Moon

As we have closed month of September on Friday (29 September), what we have seen a volatile month for stocks in September.

Traditional defensive stocks did not help much to protect in times of volatility and uncertainty. One of the reason is the bond market. 10-year Treasury yield was going up and rate-sensitive stocks are experiencing selloff.

$S&P 500(.SPX)$ was on track for a monthly loss of around 4.6%, while the Dow Jones went down 3.1% and the NASDAQ loses 6%. September is historically the worst month for equities.

The only sector which is posting positive gains is Energy, we saw it up more than 11% versus a 3.8% pullback for the S&P 500.

I will be sharing the market shakers in last week of September and the Gap Up candidate on 29 September 2023.

And see if we can find opportunities in these stocks this week.

Market Shakers For Week of 25-29 September 2023

$XPeng Inc.(XPEV)$ announced its delivery results for September and the third quarter of 2023. A total of 15,310 Smart EVs was recorded for the month of September 2023. This is a 12% increase compared to August, with a year-on-year increase of 81%.

With a more than 10% increase in last week (25-29 September 2023) trading, I would think XPeng would have a good run this week. I would be looking for another close to 10% increase for XPeng.

Technical Analysis - 50-day MA Period

XPeng just break above the 50-day period and with the latest deliveries results for September, I would see XPeng clearing the 50-day period higher.

Another 10% increase this week would be in the horizon.

Top 5 Gap Up Stocks (29 September 2023)

$Nike(NKE)$ has a good Gap Up after they post a stellar earnings. This earnings would be a significant one for the retail sector.

While we expect consumer spending to reduce because of inflation uncertainty, Nike earnings defies consumer pullback, I believe Nike has more rooms for upside this week.

Technical Analysis - Nike (NKE) - Average Directional Index (ADX)

We can see ADX is gearing towards 40 and cross it, Nike might be coming for a strong trend. +DI is above -DI suggest that it is going through a bullish move upside.

I would foresee Nike to have some upside this week.

Summary

As we close out September, the last week of September did give us some consolation but it is not enough to steer S&P 500 out of the woods for September.

Now the question is whether we can have a good October would depend if we still see continued rise in rates and real yields. This will make us rethink the stock-market valuations.

Though there is signs that the recent downs in September is temporary, we might see investors who are bullish coming back in October. I would think it is better to monitor the situation and how further rates and real yield played out.

I will be looking out for long position potential in October.

Appreciate if you could share your thoughts in the comment section whether you think October would be a good month for consumer goods retailers and whether tech stocks would see a rebound.

@TigerStars @Daily_Discussion @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.