Stocks To Trade Now: Buy Starbucks, Sell Short eBay And Accenture

The market anticipates a mild September correction, predominantly in technology, influenced by declining monthly price cycles for NVIDIA, Apple, and the NASDAQ, despite mitigating factors like the '5' year decennial pattern and positive early-month trading. Concurrently, the analysis recommends a long position on Starbucks, targeting $91+ by year-end due to favorable seasonality and cycle bottoms, while advising short positions on eBay, aiming for $85 by late October, and Accenture, projected to fall to $210, based on their respective bearish cyclical and relative strength indicators.

Analysis

The market is exhibiting conflicting technical signals, pointing towards a mild correction primarily concentrated in the technology sector for September. Negative monthly price cycles for market heavyweights NVIDIA (NVDA) and Apple (AAPL), along with the NASDAQ Composite, are aligned with September's historical underperformance for tech stocks. However, this bearish outlook is tempered by two key mitigating factors: the decennial pattern for years ending in a '5,' which are historically strong, and positive price action in the first three trading days of the month, suggesting a 'soft landing' rather than a sharp downturn. Specific opportunities arise from this divergence. Starbucks (SBUX) presents a long case based on a highly favorable seasonal period, with the stock having risen between October 3rd and December 7th in 88% of the last 33 years, and its weekly and monthly cycles have reportedly bottomed, supporting a price target of $91 or higher by year-end. Conversely, short opportunities are identified in eBay (EBAY) and Accenture (ACN). EBAY's bearish case is driven by negative seasonality and cyclical tracking, with a projected decline to the $85 area by late October. ACN shows more pronounced weakness, with its cycle pointing lower, relative strength falling since 2022 to a new low, and a lack of accumulation, suggesting a potential drop to $210 before a sustained recovery.

Key Decisions for Investors

• Anticipate near-term volatility and a potential mild pullback in the technology sector, particularly in mega-caps like NVDA and AAPL, given the confluence of negative cyclical and seasonal indicators for September.