The market began the week down on Monday, with the Nasdaq falling over 100 points before rallying — and more in Monday’s stock market recap.
Most of the news this week revolves around inflationary pressure and bottlenecks in the supply chains, as well as learning how that pressure is impacting our economy… And if it’s going to do so on a grand scale.
I’ll also reveal which sectors are the strongest, and one long stock and three shorts.
Stock Market Recap
In today’s stock market recap, Wall Street began the week lower after weak U.S. jobs data and continuing energy issues in China. This will be a busy week full of inflation, new jobs, supply chain issues and retail sales data. Retail sales make up about 70% to 75% of the economy, so this number reflects on the gross domestic product, making it super important.
We’ll also get information from both the producer and consumer price indices, which will tell us if higher producer prices are being passed on to the consumer.
The bond market is also closed on Monday due to the Columbus Day holiday. And since the stock market gets its directional bias from the bond market, expect some volatility but not a lot of direction. I’ve picked out one long and three short stocks to trade these conditions…
Roger’s Radar: One Long Stock and Three Shorts
The long stock I’m looking at is industrial corporation and aluminum producer Alcoa Corp. (Nasdaq: AA). The stock has been hovering around its 50-day moving average. The $47-per-share level is a good place to buy in with a plan to hold up until about $53.
I also have three short stocks to consider in the current market climate.
In this video, you’ll discover why retail sales could be the biggest report of the week… major buy levels for the S&P 500 and Dow Jones… three sectors that are bullish right now… which ETFs are on the chopping block… and how to trade current conditions with maximum safety in mind.
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