loader image

2 Stocks to Fade After the Big GDP Miss

by | Jul 29, 2021 | Uncategorized

Don’t be fooled by this market. It may look bullish, but only 125 out of all stocks are making 90-day highs. The market is vulnerable and we could still see rising interest rates alongside  COVID-19 cases. So I’ve picked out two bearish gap trades — and more in today’s stock market recap.

But first…

Stock Market Recap

Global stocks are mostly higher after Thursday’s gross domestic product report for the second quarter of 2021.

U.S. GDP grew at a solid rate of 6.5%, but came in way short of estimates of 8.4%. Jobless claims fell to 400,000 from the previous week’s 419,000. 

Federal Reserve Chair Jerome Powell kept a reserved tone on Wednesday, giving no hint of a new timeline for changes in monetary policy. Investors expected a different outcome from the Federal Open Market Committee meeting this week. The Fed’s stance on inflation and the bond purchasing program, however, remain unchanged.

Momentum levels continue to show large caps leading the stock market and holding indexes up near record highs. When looking at the relative strength performance of the S&P 500, we see the market is fragmented. Stocks are vulnerable right now and they could drop to or below their 50-day moving averages before going higher. 

Roger’s Radar: Top 2 Stocks to Short

Boeing Co. (NYSE: BA) bounced back up after hitting its 50-day MA. The company has struggled since the pandemic started. Airlines took a hit in 2020 and BA experienced a record number of cancellations for its aircraft. This stock could fill the gap to the downside in the near term, and could experience further pressures from rising delta variant cases.

The second stock that could fill the gap lower is a distributor of specialty food products. The stock looks like it could trade lower and would also be in trouble if any pandemic restrictions are reimposed later this year. 

In this video, you’ll discover why Thursday’s Fed report is highly instrumental to market action… whether stocks are ready to trade higher again… whether large caps are still overbought compared to small caps… the best way to trade this market right now… and two hot gap fades.

P.S. The Best Educational Resources and Trades for Just $7

Why get stuck doing all of the research when traders can have decades of knowledge and experience in one membership…

With Overdrive Profits, members have the opportunity to multiply their gains and grow their trading accounts as fast as possible.

And this isn’t just a place to get trades… Members also get multiple strategies, private training materials and exclusive tools to put their trading success into overdrive.

Not only will members get a chance to make gains of 75.64% on ALB and 64.63% on KR… But they’ll also be able to learn how the pros trade! 

Get the Deal


Check back each morning for Roger’s Radar and the most important news and numbers in the WealthPress stock market recap.

WRITTEN BY<br>Roger Scott

WRITTEN BY
Roger Scott

What to read next

Have any questions? Contact Our Customer Service Team