The put/call ratio, which gives us an idea of market sentiment, is reaching overly bullish levels. The stock market is also showing signs of fragmentation, with sectors trading unusually. This isn’t a market to trade for oversized gains on speculative stocks. So I’ve picked out four pullbacks that provide low-risk upside potential — and more in today’s stock market recap.
Stock Market Recap
In today’s stock market recap, global stocks are mixed this morning as investors digest economic reports to gauge inflation.
The Consumer Price Index (CPI) measures changes in how much U.S. consumers pay for everyday goods and services. The CPI for July was reported at 5.4%, the same it was in June and only slightly higher than analysts’ estimate. While the CPI measures inflation on a consumer level, Thursday’s economic report will show us inflation on a producer level.
Travel restrictions have been reimposed in China and parts of Japan remain in a state of emergency. Travel restrictions started in Asia in 2020 and later spread out to the rest of the world. The economic recovery could be slowed or halted if we see similar measures taken in the U.S.
Roger’s Radar: 4 Top Pullback Trades for This Week
American Tower Corp (NYSE: AMT) is one of the world’s largest REITs and it operates multi-tenant communications real estate. AMT has pulled back to its 50-day moving average. This stock will benefit from rising COVID-19 cases and a move toward a state-at-home environment.
Other stocks on my radar are a pharmaceutical company and a real estate services company also pulling back. The fourth play for today is a health care stock also hitting its 50-day moving average. These defensive moves could do well if restrictions get reimposed.
In today’s video, you’ll discover which sector offers the best opportunity for gains right now… why stocks remain stagnant and for how long… what the put/call ratio is pointing to… and which stocks to buy now and why.
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Check back each morning for Roger’s Radar and the most important news and numbers in the WealthPress stock market recap.