Today is Day 7 of your current cycle. So, it’s time to make a new round of AI-driven trades.
But with all eyes on next week’sFederal Open Market Committee meeting, we’re taking it cautiously for this new cycle.
While the whole market is pricing in at least a 25-basis-point cut to the Federal Funds rate, there’s still a lot of uncertainty.
According to CME’s FedWatch tool, the majority of futures traders expect three or more cuts by the end of this year.
Yet, inflation numbers from this morning’s Consumer Price Index weren’t great.
CPI ticked up in August to 2.9% from July’s 2.7% increase.
Though, core inflation, which excludes food and energy, came in at 3.1%, unchanged from July.
That’s more than a full percentage point above the Fed’s target inflation rate of 2%.
Still, there seems to be no backing down by the Fed.
Everyone will be watching this coming Wednesday, when Jerome Powell starts the 2 p.m. presser.
For our purposes, what he says could have a big impact on short-term prices for stocks.
So, like I said above, we’re playing it safe. Really safe.
IRVING’s AI just signaled that you should buy one new position: Sprouts Farmers Market (SFM).
If you’re not familiar, it’s a major organic grocery store chain across the U.S.
It has 455 stores in 24 states … and is growing that number at a remarkable 10% clip each year.
Its healthy choice of products makes it one of the fastest-growing grocery brands in the country — with stores from California to Florida to Washington state.
And it’s a financial powerhouse.
EPS grew 44% in its most recent quarter on a sales jump of 17%.
Widening margins, rapid expansion and a shareholder-friendly buyback program makes it a winner in the Weiss Ratings system and, of course, for IRVING’s AI.
Sprouts has maintained a “Buy” rating since mid-2023 and either a “Buy” or “Hold” ratings since 2017.
In fact, since that time, SFM shares are up 510% compared to the S&P 500’s 181%:
IRVING’s AI likes this company so much, it recommends that you hold it through next week’s FOMC meeting.
And that’s the only one it recommends you hold.
That means it’s time to exit all your open trades:
- SAP (SAP)
- Carrier Global (CARR)
- ESAB (ESAB)
- AptarGroup (ATR)
- Coca-Cola Europacific Partners (CCEP)
We did say that caution is the word of the day here.
With so much riding on a single speech next Wednesday, we recommend you play it with this proven staple.
After all, people have to eat. And they are clearly choosing to buy their food from Sprouts.
As we’ve noted, we can have as many as 20 stocks during any single cycle.
But with the Fed meeting ahead of us, and all the volatility expected to arise leading into it, IRVING’s AI has been cautious.
When only one company passes through IRVING’s rigorous models and checks, you should really listen.
Buy Sprouts and keep cash through next week’s big Fed meeting.
Get that buy and those sell orders in as soon as you can.
After you do, mark your calendar on Friday, Sept. 19.
That’s your next trading day.
We’ll see you then.
Take care,
AL Qureiyeh
