The upcoming OPEX (options expiration week) in May is expected to bring market consolidation, followed by a rally at the end of the month. However, June is predicted to be bearish, completing the second quarter correction. Since 1985, May OPEX has been one of the less bullish weeks throughout the year. Investors are advised to keep an eye on market trends and be prepared for potential fluctuations in stock prices.
One of the companies reporting earnings this week is Applied Materials, which is highly-ranked for relative strength and seasonality. The stock is near a new high in relative strength, with the monthly cycle rising and the oscillator turning up. There have been 4 buy and 4 sell signals in the past year, all of which have been profitable. Analysts anticipate a share price closer to $220 in the near term for Applied Materials.
Walmart is also set to report earnings, with expectations of the report being met with buying. Relative strength for Walmart has been on the rise since December, and seasonality is favorable for the company. Over the past 44 years, shares have risen 77% of the time from May 17th to July 20th. The monthly cycle for Walmart is forecasted to rise through 2024, with all three signals this year proving to be profitable. Analysts project that the share price could potentially rise to $70 or higher.
Investors are advised to closely monitor the performance of Applied Materials and Walmart in the coming days, as their earnings reports could have a significant impact on their stock prices. With potential buying opportunities on the horizon for both companies, it is important for investors to stay informed and be prepared to make strategic decisions based on market trends and financial analysis.
As the market continues to navigate through OPEX week in May and prepares for potential rallies at the end of the month, investors should remain cautious and attentive to any fluctuations in stock prices. June is expected to be bearish, which could potentially complete the second quarter correction. By staying informed and proactive, investors can position themselves to make informed decisions and potentially capitalize on market opportunities in the coming weeks.
