The put/call ratio, which tells us whether the bulls or bears are presently controlling the stock market, is at its highest fear level in the past nine months. And the higher it goes, the more the rubber band, as I like to call it, stretches out. This means we’re getting close to the bottom.
But remember, markets are choppy right now. So it’s a great time to avoid breakouts, pullbacks and possibly short sides. That’s why I’ve identified three stocks that will do well even in this type of climate — and more in Thursday’s stock market recap.
Stock Market Recap
In Thursday’s stock market recap, global stocks are lower today after the Federal Reserve made no definitive decision to pull back on stimulus efforts.
This lack of direction has fueled worries among investors and traders, along with rising COVID-19 infections caused by the delta variant.
But the biggest factor today is the put/call ratio…
In Wednesday’s video, I explained that volatility is at pre-pandemic levels and set to rise even more. So if the put/call ratio moves higher, then fear will pick up and the market will begin to trade even lower.
Well, the put/call ratio is now rising.
And there’s a good chance it’ll go a little bit higher before cooling off…
Roger’s Radar: 3 Low-Risk Stocks to Trade When Volatility Spikes
The first low-risk stock I want us to look at is Restoration Hardware Holdings Inc. (NYSE: RH). It’s a luxury home furniture company, and I like the fact that its stock is pulling back right now. If RH can hold its current levels, it should see upside to about the $750 level again.
You can find the next two low-risk stocks on my list in the Health Care sector.
In Thursday’s video, I’ll show you why VIX — known as the “fear gauge” — levels are spiking… whether the put/call ratio is bearish or bullish… the significance of the current sell-off pressure… the biggest Federal Reserve report today… and three low-risk trade opportunities right now.
Check back each morning for Roger’s Radar and the most important news and numbers in the WealthPress stock market recap.