With rising COVID-19 cases, restricted flights to Europe and Hurricane Ida battering Louisiana, things are about to get worse, not better. I’ve identified two pullback plays, one bullish and one bearish, to trade this market environment — and more in Tuesday’s stock market recap.
But first…
Stock Market Recap
In this stock market recap, global stocks are mostly higher despite rising COVID-19 cases and weak Chinese manufacturing data.
Consumer confidence hit a six-month low of 113.8 Tuesday morning due to rising delta cases and inflation worries. Remember, consumer confidence reflects on two-thirds of U.S. gross domestic product… Because two-thirds of the GDP is retail sales and retail sales is consumer confidence.
Shipping bottlenecks will increase and the Industrials, Materials and Energy sectors will all be affected by Hurricane Ida. Damage is still being assessed and the hurricane has added a natural disaster factor to the already complex economic situation here in the U.S.
Roger’s Radar: 2 Pullbacks in Different Directions
I’ve been talking about Carvana Co. (NYSE: CVNA) for a few months. Stocks that fall to their 50-day moving average from a peak high usually bounce back strong. The car industry continues to be hot and I expect this stock to benefit.
The bearish pullback stock is a cancer genomics company. It has the same technical pattern as CVNA but to the downside. Its 50-day MA is below its 200-day MA, which is known as a death cross when the 50 crosses below the 200. The stock has bounced up after making a swing low. I expect it to trade lower after bouncing back from its 50-day MA.
In this video, you’ll discover why consumer sentiment data is so crucial… the best sector to play right now… whether stocks remain choppy or are trending higher… the most likely trading action for bonds… the biggest threat to the global economy… the biggest report of the week… a bullish pullback trade to go long on…. and a bearish pullback short trade.
P.S. California Man Bets $3.4M of His Own Money
Former Air Force pilot and million-dollar investor Chuck Hughes is getting ready to disclose his brand-new trading discovery called “Omega One.”
He’s revealing it to a select group of traders, and guess what…
My viewers are invited!
Not only will he reveal this pricing anomaly that’s recently paid him 104 times out of 108 trades…
But he’s going to put $3.4 million on the line to help traders succeed with his new innovative formula!
Check back each morning for Roger’s Radar and the most important news and numbers in the WealthPress stock market recap.
