Markets remain choppy as inflation fears and COVID-19 cases continue to rise. Pullbacks tend to do well in this type of environment because there’s not a lot of directional volatility. So I’ve identified four, high-probability opportunities trading at a discount — and more in today’s stock market recap.
But first…
Stock Market Recap
In today’s stock market recap, global stocks are mostly lower this morning following economic data this week and rising delta variant infections.
The bond market is trading below its 200-day moving average for the first time in two weeks. This move hints to investors’ expectations that interest rates will move higher. Thursday’s Produce Price Index (PPI) report indicates that the economy is running hot.
Keep your eye on the Materials and Industrials sectors as I expect these to do well in the near term. The Financials sector would also benefit from a rise in interest rates. But financial stocks are overbought, so I expect a small pullback before moving higher. Stocks in the Tech, Real Estate and Communications Services sectors could trade sideways — like most stocks have been recently.
Roger’s Radar: Top 4 Pullbacks to End the Week
American Water Works Company Inc. (NYSE: AWK) has been on a bullish trend for over a month. It recently pulled back to its 200-day moving average and looks like it could bounce back to new highs.
I’ve also identified an apartment REIT that could benefit from a shift to multi-family properties. I’ve picked out a company that operates global exchanges and would benefit from a rise in trading if we go to a stay-at-home environment. The fourth play for today is on semiconductor stock that could also bounce higher from a pullback.
In Friday’s video, you’ll discover a complete sector-by-sector analysis of the S&P 500… the top stocks showing high-probability pullbacks… and whether bonds will rise or fall back below their 200-day MA.
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The market is vulnerable right now, and investors need to have a disciplined approach.
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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.
