Momentum Monday: Inflation Data in Focus this Week

Want to start the week ahead of the pack? Check out Momentum Mondays, where I cover the leading breakout stocks in the market, summarize the major events of the week ahead, and prepare investors for profitable trading.

Today, we will be taking a look at the broad stock market indexes to summarize the action of the last few weeks, then we will look at theeconomic calendarand earnings releases to address any market moving data coming our way. And finally, I will share four compelling technical trade setups in stocks with top Zacks Ranks.

Stocks Grinding Higher… Time for a Rest?

After last week’s goldilocks employment number and Jerome Powells open-ended testimony at congress, all that’s left is inflation data.

On Tuesday morning we get CPI and Core CPI data. Analysts are forecasting a MoM increase of 0.4% and YoY increase of 3.1% for headline CPI and 0.3% MoM and 3.7% YoY for Core CPI.

Then on Thursday morning PPI and Core PPI round up the week’s major data points.

After seeing some diverging performance across the magnificent seven, along with some seasonal weakness approaching there is some potential this week for a minor correction this week. If the S&P 500 index can move below the 5,090 level, we may see 5,000 and even below there.

It is also worth noting that both Bitcoin and Gold made new all-time highs last week.

TradingView

Image Source: TradingView

Technical Setups

We have a handful of nice trading setups still in the market which can be monitored by active traders. All of these trading ideas come from stocks with top Zacks ranks.

Netflix NFLX may be a worthy next addition to the Mag 7. The breakout level is $614.

TradingView
Image Source: TradingView

Ecolab ECL has an extremely tight bull flag forming on the daily chart. If it can breakout above $226, it should continue higher.

TradingView
Image Source: TradingView

Block SQ is one of my favorite stocks in the market right now. An opportunity for contrarians, but with upward trending earnings revisions and a nice technical trade setup.

TradingView
Image Source: TradingView

Cardinal Health CAH has been a steady performer this year, and offers the advantage of being a defensive stock.

TradingView
Image Source: TradingView

Bottom Line

Even the best trading setups fail, so it is always important for traders to prioritize making a trading plan, following the plan, and utilizing strict risk management protocols.

Good luck this week traders!

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Today, See These 5 Potential Home Runs >>

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Ecolab Inc. (ECL) : Free Stock Analysis Report

Netflix, Inc. (NFLX) : Free Stock Analysis Report

Cardinal Health, Inc. (CAH) : Free Stock Analysis Report

Block, Inc. (SQ) : Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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