US Markets Round-Up

This week, the Russell 3000 index, an important benchmark of the US stock market across market capitalizations, started on a negative note; however, all its earlier losses were erased in the latter part of the week and the index settled at 2644.60 with a week till date (WTD) gain of ~0.42 percent on September 23, 2021. Other major indices such as S&P 500 and NASDAQ Composite also showed marginal positive movement for the week. On September 16, 2021, the S&P 500 index settled at 4448.98 with a WTD gain of ~0.36 percent, while NASDAQ Composite Index settled at 15052.244 with a WTD gain of ~0.06 percent.

In the latest FOMC policy meeting, the Federal Reserve has kept the interest rates unchanged which supported the market sentiments; however, an announcement by Federal Reserve Chair Jerome Powell that the Fed could reduce asset purchases in November, limited the gains. An increase in the US weekly unemployment claims to 351,000 from 335,000 (revised level) in the prior week further limited sharp upside movement in the indices. 

Having understood the US market performance over the week, taking cues from major global news, and based on our technical analysis of the Russell 3000 index for the upcoming week, now let us have a look at the two NYSE/ NASDAQ listed stock picks from the technical standpoint. Noted below are our recommendations based on generic insights, entry price, target prices, and stop-loss for Marriott Vacations Worldwide Corporation (NYSE: VAC) and 9 Meters Biopharma Inc (NASDAQ: NMTR) for the next 2-4 weeks duration:

Marriott Vacations Worldwide Corporation 

Marriott Vacations Worldwide Corporation (NYSE: VAC) is a global vacation company that operates through two segments: Vacation Ownership and Exchange & Third-Party Management. Noted below are the key price indicators for the stock:

Price Action Analysis (on the Weekly Chart) 

VAC has recently broken a downward sloping trend line on the upside, indicating the possibility of an upside direction hereon. The trend line breakout is supported by a rise in the volumes, hereby higher market participation, further supporting a positive stance.  Now the next major resistance level for the stock appears at USD 183.35 and prices may test this level in the short-term (2-4 weeks). A further breakout above USD 183.35 backed by volumes may extend buying into the stock to USD 191.00 level.

Technical Indicators Analysis (On the Weekly Chart)

On the weekly chart, RSI (14-period) is trading at ~52.97 levels, indicating a positive trend for the stock. The weekly volumes are showing an increasing trend and seem supportive of an upside movement. The CMP is above the 50-period SMA and 21-period SMA, further supporting the up move.

Financial Summary

Summary of the Key Financial Metrics for the past four years for Marriott Vacations Worldwide Corporation is as follows:

General Recommendation

As per the above-mentioned price action and technical indicators analysis, we can conclude that Marriott Vacations Worldwide Corporation is looking technically well-placed on the chart, and we have a ‘Buy’ rating on the stock. Investment decision should be made depending on an investors’ appetite on upside potential, risks, and any previous holdings. This recommendation is purely based on technical analysis, and fundamental analysis has not been considered in this report. The summary of our recommendation is as follows:

9 Meters Biopharma Inc 

9 Meters Biopharma Inc (NASDAQ: NMTR) is a biopharmaceutical company focused on gastroenterology. Noted below are the key price Indicators for the stock:

Price Action Analysis (on the Daily Chart)

NMTR's prices are sustaining above a downward sloping trend line breakout for the past 1 month, indicating an upward trend for the stock. Stock price has recently started to move up after finding support at the same downward trend line, further supporting a positive stance. Now the next resistance level for the stock appears at USD 1.64 and prices may test this level in the coming sessions. A further breakout above USD 1.64 backed by volumes may extend buying into the stock to USD 1.75 level.

Technical Indicators Analysis (On the Daily Chart)

On the daily chart, RSI (14-period) is trading at ~66.57 levels, indicating a positive trend for the stock. The weekly volumes also seem supportive of an upside movement. The CMP is above the 50-period SMA and 21-period SMA, further supporting the up move.

Financial Summary 

Summary of the Key Financial Metrics for the past four years for 9 Meters Biopharma Inc is as follows: 

General Recommendation

As per the above-mentioned price action and technical indicators analysis, we can conclude that 9 Meters Biopharma Inc is looking technically well-placed on the chart, and we have a ‘Speculative Buy’ rating on the stock. Investment decision should be made depending on an investors’ appetite for upside potential, risks, and any previous holdings. This recommendation is purely based on technical analysis, and fundamental analysis has not been considered in this report. The summary of our recommendation is as follows: