Today = volatile trading?

Join TradeAlgo's Free Live Trading Session ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!]( Hello investor, Today = volatile trading? It is tough to trade in the current market. The economy showed signs of a slowdown as the first-quarter GDP grew at a modest pace of 1.3% versus the original report of 1.6%. Notably, spending and inflation were adjusted lower. Personal spending rose 2.0% which was lower than the previous report of 2.5%. In the graphic below, you can see how real personal spending was going downtrend since the third quarter of 2023: (Source: Bloomberg) Of course, this boosted the odds of a rate cut happening this year. The Federal Reserve is expected to cut interest rates if the economy cools down — with inflation coming down. At the same time, it raises the risk of lower earnings for American companies. Consumer spending is the engine of the economy, so if they are struggling too much, it could affect bottom line profits. - “The economic data today are a double-edged sword,” said Chris Zaccarelli at Independent Advisor Alliance. Chris Zaccarelli at Independent Advisor Alliance (Photo: CNBC) Moreover, Zaccarelli pointed out that earnings is the most important part of the stock market. The speculation of rate cuts could boost stock prices temporarily, but it will still come down to earnings power that determine the stock market’s future direction. - “Of course, they are interrelated because all things being equal, the economy is likely to stay out of recession if interest rates are lower than they are now, but ultimately it is the economic expansion – and continuation of corporate profits – that are the most important thing in the medium and long term,” said Chris Zaccarelli. He sees the economy to keep growing, which keeps inflation sticky, throughout the year. While this may mean no rate cuts this year, stronger earnings will likely keep the bull market alive, said Zaccarelli. - “So the stock market should remain in a bull market, not withstanding the occasional pullback along the way,” he said. Get ready for the “big one”: Today will receive the latest PCE price index reading — the Fed’s preferred inflation gauge. It will likely get the most attention, so the market may be volatile today. Invest in the Biggest Opportunity in Software Today’s Stock Pick: [monday.com]( (MNDY) Software is a cut-throat industry. The margins can be insanely high, but competitors can copy your products instantly and undercut on prices. From there, it’s the race to the bottom. So, it is important for software to become too indispensable for a business to abandon one for the other. That’s what monday could be. It is the “operating system” of a business operation. Its platform helps users keep track of project management, resource management, requests & approvals, and custom workflows. Suppose that a business wants to launch a new product. It can set up tasks to customize the workflow from the beginning to the end. (Source: monday.com) Or an user can use monday to create a CRM to keep track of sales deals: (Source: monday.com) All in all, monday is designed for three main categories: (1) work management, (2) development, and (3) sales CRM. (Source: monday.com) Sure enough, its products are so popular that monday has customers from 200+ industries in 200+ markets around the world. Its customers base grew at a 26% CAGR from 2019 to 2023: (Source: monday.com) Now, the biggest question for a software startup is whether it can move upward in the market. Selling to small businesses (SMBs) is only the beginning. Once it is cracked, the startup must prove its ability to sell to enterprise clients. It is key because enterprise clients offer much bigger revenue opportunities. [Monday.com]( passed it with flying colors. Its $100k+ ARR customers are hitting an inflection point with a 55% YoY growth in the first quarter of 2024. That makes it a perfect time to jump into [monday.com]( as it expands its $100k+ ARR customers. (Source: monday.com) Naturally, it leads to a strong quarterly revenue growth. Its quarterly revenue run rate jumped four-fold in three years — going from $236 million to $868 million in the most recent quarter. (Source: monday.com) And revenue growth is not the only good thing about [monday.com](. Its quarterly free cash flow margin increased 70% in just one year. The current margin is incredible at 41%: (Source: monday.com) What’s more, its annual expenses as a $ of revenue dropped steadily from negative 53% to positive 8%. So, the company exited its investment stage and is now focused on a more sustainable business model. It could do wonders for the stock price because Wall Street loves profitable growth. (Source: monday.com) Bottom line: monday.com is higher on the risk profile because of its valuation. It is valued as a high-growth stock. If you are looking for a growth stock to add to your portfolio that has a bright long-term future, this may be your stock. [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!](       © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](