Key Catalysts for This Week’s Trading

Earn While You Learn! ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!]( Hello investor, Key Catalysts for This Week’s Trading Last Friday delivered a blockbuster jobs report. Now, what? The sentiment on Wall Street is positive after two key catalysts — the Federal Reserve has initiated its rate-cutting cycle and the strong economy. - “Two old adages on Wall Street: don’t fight the trend and don’t fight the Federal Reserve. ... These remain among two key pillars for today’s equity market,” Truist Wealth co-chief investment officer Keith Lerner said. Truist Wealth co-chief investment officer Keith Lerner (Photo: CNBC) Later this week will bring more reports that may determine the market’s short-term direction — the consumer price index and the start of the earnings season. Investors are worried that a red-hot labor market could lead to higher inflation. If that’s the case, the Fed may not be able to cut rates as much as possible. The earnings season will reveal how strong corporate earnings are. Guidances will be in the spotlight to see if companies expect solid earnings growth over the next few months. Pepsico will report earnings on Tuesday. Delta and Domino’s Pizza are due on Thursday. BlackRock, Bank of NY Mellon, JPMorgan Chase, Fastenal, and Wells Fargo are scheduled to report on Friday. The presidential election is a major wild card. Investors might pare back their bets until they know who wins the election. Both candidates have different economic plans, so the winner will have some implications on the economic trajectory. The risk in the Middle East remains high. Israel is expected to respond to Iran’s recent missile attack. Oil supplies might be at risk. If oil prices rise, it could slow down the economy and aggravate inflation. Top Stock To Own In An Exploding TAM Semiconductors are everywhere today -- just consider the smartphone you carry with you everyday. Everything from the data storage to the antenna, the camera, even the battery requires semiconductors. The more high tech each part becomes, the smaller each circuit needs to be -- without sacrificing reliability. Now with AI, semiconductors are in hot demand right now. Today’s company manufactures machinery that makes sure each chip is manufactured uniformly, down to the nanometer. Today’s Pick: Nova Ltd. (NVMI) (Source: Nova Ltd.) What you might not know is how complex semiconductor manufacturing is. Almost every major economy is exploring how to create a domestic chip manufacturing industry. However, semiconductor manufacturing requires as many as 400-600 steps. On top of that, today’s top performing processors involve manufacturing processes as small as 5 nanometers. Apple, Intel, and AMD are all pushing to achieve 3 nanometer chips next year. To put that into perspective, here’s how small a nanometer is: - Human hair: 60 - 100 micrometers, or 60,000-100,000 nanometers - Bacteria: 1 micrometer, or 1,000 nanometers - Smoke molecules: 100 nanometers - Apple & AMD processor circuits: 5 nanometers The margin of error is razor thin. Customers don’t care how hard it is to make 5 nanometer processors. They just want their smartphone and laptop to work. Nova makes machines that can measure processors and memory down to 0.1 nanometers. They combine optical and x-ray sensors using specialized algorithms. (Source: Nova Ltd.) Naturally, such specialized equipment drives high margins. Nova reported 26% operating margins last year! What’s more, annual revenues grew at 16% CAGR in the last five years. (Source: Nova Ltd.) - Factor #1: Nova Ltd’s technology focuses on the kinds of extreme precision that’s required for the next generations of chips. Is this growth temporary? Not at all. I am sure you have read all the news headlines about the AI boom — especially Nvidia. The demand for AI chips is simply way higher than the supply. So, two major factors work in Nova’s favor. - Factor #2: Technology adoptions trends provide incredible tailwinds. AI, data centers, autonomous vehicles, 5G, and more should drive increased demand in the next few years. (Source: Nova Ltd.) Sure enough, Nova expects its total addressable market to grow by 50% by 2027! (Source: Nova Ltd.) Bottom Line: Nova Ltd. makes equipment that’s essential to manufacturing the smallest, highest performing semiconductors. Their specialized equipment makes 20%+ net margins, and now revenue growth is accelerating. Plus, technological trends provide strong tailwinds. Just as importantly, the company’s 0.1 nanometer precision will be used on the next generation of processors. Buy now and profit as semiconductor manufacturers ramp up to supply the next generation of chips. [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!](       © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](