You have a few new moves to make for your first seven-day trading cycle since the Fed kicked off a new round of rate cuts.
As we noted last week, IRVING’s AI was playing it cautiously with so much uncertainty surrounding Fed Chair Jerome Powell’s post-meeting comments.
The cut was a quarter-point, which was largely priced into the markets. And Powell’s comments were measured and overall unsurprising.
- He said the recently revised employment data suggests that there’s pressure on the economy …
- BUT not enough to cut the Fed Funds rate more than 25 basis points.
- His colleagues also indicated that two more cuts are likely before the end of this year, with more in 2026.
That’s about what Wall Street expected, which is why we didn’t see a huge reaction.
But now that we know for sure, your AI can do its thing without a complicated catalyst hanging over its head.
Here’s what IRVING’s AI recommends you do today …
Buy these four stocks:
- ESAB (ESAB)
- Brinker Int’l (EAT)
- Novartis (NVS)
- Carrier Global (CARR)
As you can see, we’re recommending you load up on a few industrial stocks.
Both Carrier Global and ESAB should be familiar.
We had mixed results with them two cycles ago. Though, combined, they netted a slight gain.
This time, with shrinking interest rates, they should do even better.
The other two are new. Though you probably know them indirectly.
Brinker owns and operates several casual dining franchises. Specifically, it manages several Chili’s Grill & Bar and Maggiano’s Little Italy restaurants.
And it has a lot of them — over 1,600 franchises in 29 countries and two U.S. territories.
In Brinker’s most recent fiscal year, which just ended in June, the company saw top- and bottom-line growth.
IRVING’s AI likes its stock price right here, just under $140.
Novartis is another company you might recognize by its products, if not its name.
This $237 billion giant pharma company has several blockbuster drugs like Entresto and Kisqali.
What makes Novartis such a timely play for our system is this chart:
As you can see, it’s been on fire all year.
But its recent pullback gives us a ripe opportunity.
If Novartis bounces off its 50-day moving average, we could see a quick profit during this cycle.
That just leaves last week’s sole trade — Sprouts Farmers Market (SFM).
It did not hold up during Fed Week as well as expected. But nothing has fundamentally changed.
It is still a super-growth company in a defensive industry.
With its plans to expand its already-national footprint further north — into New York, Connecticut and Massachusetts — Sprouts’ double-digit EPS increases should continue for quite some time.
Meanwhile, its stock is due for a nice bounce here.
Let’s check its technical position:
As you can see, shares have been falling pretty hard all summer.
But it now appears to have pushed the stock into deeply oversold territory.
Its Relative Strength Index sits at 23. Anything below 30 indicates a clearly oversold position.
While oversold stocks can get even more oversold, these conditions can also serve as buying opportunities.
That can apply to current shareholders, as well.
IRVING’s AI agrees.
So, here’s what we’re going to do for this cycle …
If you didn’t get into SFM last cycle, buy it today.
If you DID, hold what you have AND buy an equal dollar amount again today.
This will give you a larger-than-average position.
But remember, IRVING’s AI can select up to 20 trades during any given rotation.
Adding more shares of SFM is like having one more position on the board …
One that reduces your cost basis.
This is called dollar cost averaging, or DCA. It’s a strategy I personally use all the time.
In this specific case, it will drop your cost per share from $137.68 to around $130, depending on when you get this order in.
This will give you a better overall return if shares do bounce from this latest pullback.
Get all these orders in.
After you do so, be sure to mark your calendar for Sept. 29.
That’s your next trading day.
We’ll see you then.
Take care,
AL Qureiyeh
