Can Snowflake Make It Rain?

The Each day Breakdown seems at this week’s key occasion, together with the GDP and PCE stories, Snowflake’s chart, and crypto’s selloff.

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Weekly Outlook

The S&P 500 (SPY ETF) and Nasdaq 100 (QQQ ETF) climbed for a 3rd straight week, notching extra document highs alongside the best way. Small caps helped lead the cost, because the Russell 2000 lastly hit new highs as effectively, with the IWM ETF gaining 2% final week — its seventh consecutive weekly achieve.

The large query now’s whether or not bulls can hold that momentum going, or if September’s seasonal weak spot will lastly begin to matter.

On the financial entrance, two stories will take heart stage: GDP and PCE. 

Thursday’s GDP launch will mark the ultimate studying for Q2. Again in July, estimates stood at 2.5%, however they’ve since been revised as much as 3.3% because the economic system has confirmed extra resilient than anticipated. Friday’s PCE report — the Fed’s most popular inflation gauge — will even be key. Whereas the Fed seems set on delivering two extra price cuts this yr, an in-line or cooler inflation studying would reassure traders that such a path stays viable.

Earnings-wise, Micron and AutoZone are set to report on Tuesday, Cintas follows on Wednesday, and each Accenture and Costco report Thursday.

Crypto Dip

In crypto, we’re seeing broad stress to begin the week, with Ethereum main the dip. That’s weighing on Bitcoin, XRP, Solana, Dogecoin, Stellar, Bitcoin Money, and others throughout the house as bulls search for a catalyst and hold a detailed eye on key technical assist ranges.

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The Setup — Snowflake

Snowflake went public in September 2020 to a lot fanfare and the inventory loved fairly a little bit of success within the prior bull market. Nonetheless, it couldn’t dodge the following bear market, finally falling 75% from peak to trough. Now SNOW has been on a comeback, up nearly 50% up to now this yr and up simply over 100% over the previous yr. 

I put some commentary on the chart above, however largely to level out the inventory’s sturdy one-day earnings rally of roughly 20% on August twenty eighth — which despatched shares to a three-year excessive. 

SNOW is presently discovering assist within the $215 to $220 area and simply cleared short-term downtrend resistance. From right here, bulls are hoping that shares can proceed to rally, probably climbing to the current highs close to $250 (from August twenty eighth). If Snowflake pulls again, traders are hoping assist stays intact. 

Choices

As of September nineteenth, the choices with the very best open curiosity for SNOW inventory — which means the contracts with the biggest open positions within the choices market — had been the October $230 calls, adopted by the $250 calls, then the $240 calls. 

Bulls can make the most of calls or name spreads to take a position on additional upside, whereas bears can use places or places unfold to take a position on extra draw back. For these seeking to be taught extra about choices, take into account visiting the eToro Academy.

What Wall Avenue’s Watching

ASML

The recent streak for ASML continues, with shares rallying for a 3rd straight week and gaining 14.5%. The inventory stays in focus this week too, with shares greater by greater than 3% in pre-market buying and selling. If the inventory opens close to present ranges, ASML will hit contemporary one-year highs. Take a look at the chart for ASML. 

SNAP

Shares of Snap are rallying on this morning’s pre-market session amid hypothesis of a possible buyout or partnership. It’s been a tricky yr for SNAP, with shares down greater than 24% up to now in 2025. Regardless of this, analysts have a consensus value goal of $9.27, implying roughly 13.5% upside from Friday’s shut. 

ETH

Ethereum is slipping this morning, down greater than 5% as bulls scramble to search out assist. As we mentioned final week, let’s see if the $3,900 to $4,000 space can buoy ETH, as a pullback hits the crypto house.

Disclaimer:

Please observe that because of market volatility, among the costs might have already been reached and eventualities performed out.