3 Stocks to Watch for the Week of July 17, 2023

Welcome back to another trading week.

Last week was another good one for the markets, with the Dow up 2.3%, the S&P 500 up 2.4% and the Nasdaq up 3.3%.

This was the best weekly performance of the Dow since March, while both the S&P 500 and Nasdaq touched levels unseen since April 2022.

All this came on the back of last week’s inflation reports, where both consumer and producer price indexes showed that inflation may be cooling faster than expected – taking away the wind from the Fed’s sails for future rate hikes.

In short, market momentum is strong – which brings us perfectly to today’s edition, where as usual, I’ll spotlight three stocks with huge momentum I believe could further surge this week.

As always, please remember that the recommendations are strictly short-term momentum plays – so manage your risk accordingly.

Now, without further ado…

Nikola Corporation (NKLA)

Nikola’s stocks have popped a whopping 55% over the past week, largely due to every retail trader’s favorite phenomenon – the short squeeze.

Last Thursday, the electric carmaker announced a deal with hydrogen production and storage company BayoTech, where Nikola would purchase 50 of Nikola’s EVs. This put a lot of upward pressure on Nikola’s price – sending short sellers scrambling to cover their positions – which sent the price up even higher.

Considering the recency of the deal, there’s a good chance Nikola’s momentum could carry over to this week as well.

Coinbase Global, Inc. (COIN)

Crypto exchange giant Coinbase has been embroiled in an SEC battle for the past few months. It has vowed to fight back – and last week, there was some good news that points toward it winning the battle.

Essentially, last Thursday, a U.S. judge ruled that purchases XRP – the Ripple token – were NOT considered securities transactions. This undermines the SEC’s argument that Coinbase is operating an unregistered securities exchange.

On top of that, there’s been a lot of money flowing into the crypto space over the past couple weeks – lending further momentum that could see Coinbase stock (which rose by 33% over the past week) continue to fly this week.

Redfin Corporation (RDFN)

Online real estate broker Redfin saw its stock jump nearly 40% over the past week. There have been strong tailwinds from the real estate market, with existing supply of homes for sale still on the downtrend. Plus, U.S. home prices just posted its first rise in nearly 5 months, and median asking rent is still near record highs.

As a result many mortgage stocks have been popping. But Redfin – still down nearly 80% from its all-time high – has been leading the pack. And this momentum could still continue into this week.

To your wealth,
Felix @ Ace of Investing