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This Resource Stock Is Breaking Down as the Market Strengthens

by | Oct 19, 2021 | Market Updates

The markets are starting to move back into bullish territory. We’re likely to experience more choppiness, but there isn’t much fear on Wall Street at the moment…

We have a number of reports coming out this week, but most of the data is already baked in. So let’s take a look at the recent market action while I also reveal the strongest sector and its strongest stock, and the weakest sector and its weakest stock — and more in Tuesday’s stock market recap.

Stock Market Recap

In Tuesday’s stock market recap, stocks are up. And for the S&P 500 and the Dow, that means three full days above their 50-day moving averages. So we’re finally moving back into bullish territory.

The market is likely to resume a choppy period but the put/call ratio is neutral, and volatility isn’t an issue.

We have some reports coming this week including three big ones on Wednesday: existing home sales, the Philadelphia Federal Reserve Manufacturing Index and jobless claims. But most of that data is already baked in. 

Roger’s Radar: One Long, One Short Stock to Trade Market Strength  

Utilities are still the weakest sector, and the weakest stock is resource company Dominion Energy Inc. (NYSE: D). The stock has been breaking down, with both lower highs and lows.

If I already owned the stock, I’d wait and see if it pulled back to the $74 level, then sell and wait for it to dip to $67.

The strongest sector of the market is still energy stocks. And the strongest name is one we’ve talked about before in this space…

In this video, you’ll discover whether tech stocks are ready for more positive action… why small caps remain leaders… the most probable trading action for bonds… an update on market internals… the biggest stories of the week… the strongest stock in the strongest sector… and the weakest stock in the weakest sector. 

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WRITTEN BY<br>Roger Scott

Roger Scott

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