The stock market may be subdued as investors await Thursday’s gross domestic product report. There is usually low volatility leading up to these big reports as the data itself can significantly move markets.
There’s not much momentum right now, so instead of trading breakouts, investors should look for pullbacks. And I’ve picked out my favorite plays for Wednesday, which include one speculative crypto name — and more in our stock market recap.
Stock Market Recap
In Wednesday’s stock market recap, global stocks are mixed as investors continue to digest this week’s Federal Reserve data.
Durable goods orders in July fell 0.1%, slightly beating analysts’ consensus of a 0.2% dip. This drop was mostly due to a decline in the demand for airplanes. If cars and planes are left out, the figure rises to an increase in durable goods orders of 0.7%. Fed Chair Jerome Powell is also scheduled to speak on Friday.
Divergence continues in the market. Stocks are rising while momentum levels continue to fall. This causes choppiness, and stocks fluctuate from overbought to oversold levels.
Keep your eyes on the bond market. Analysts expect a quarter-over-quarter increase in the GDP of 6.6%. If we get a strong bump in GDP, it is likely that the Fed will move closer to tapering its bond-purchasing program.
Roger’s Radar: 1 Crypto and 2 Defensive Plays to Trade This Week
Marathon Digital Holdings Inc. (Nasdaq: MARA) mines cryptocurrencies, focusing on the blockchain ecosystem and the generation of digital assets. The stock peaked in March and has been trading below or around its 50-day moving average since then. If the stock reaches the $40 level, there’s a chance it can break out to $50.
I’ve also identified two of my favorite low-risk pullbacks. The first is a pharmaceutical company that’s fallen to its 50-day moving average. The second is one of the largest publicly traded, multifamily unit REITs. It has a one-year return of 61.64% and will benefit from record-high real estate prices.
In this video, you’ll learn which assets to avoid in the next 48 hours… what momentum levels are pointing to… whether the market is still trending up or choppy… two low-risk pullbacks in defensive sectors… and one crypto stock that’s setting up for a breakout.
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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.