loader image

The Strongest and Weakest Stocks for a Market That Could Lose Steam

by | Oct 26, 2021 | Market Updates

The Consumer Confidence Index report came out Tuesday morning, giving us an indication of what we can expect from Thursday’s gross domestic product — and more in Tuesday’s stock market recap. 

We’ve also had better-than-expected earnings reports from financial stocks, and now the market is preparing to see what’s in store for tech.

Stock Market Recap

In Tuesday’s stock market recap, we look at the Consumer Confidence Index report and its impact on the market. Consumer confidence reflects retail sales, which make up about 70% of U.S. GDP.

The consensus estimate was for 109 with a range from 103 to 113. The CCI climbed to 113.8, above estimates and at the high end of its range. This bodes well for the GDP figure coming Thursday, and should be bullish for the markets.

In terms of earnings, the market is preparing for tech stocks to report, including Wall Street’s four largest companies by market capitalization — Apple Inc. (Nasdaq: AAPL), Microsoft Corp. (Nasdaq: MSFT), Amazon.com Inc. (Nasdaq: AMZN) and Google parent company Alphabet Inc. (Nasdaq: GOOG). These reports will have a big impact on the S&P 500, as well as tell us a lot about how supply chain issues are impacting the market. 

Also keep your eye on the put/call ratio as it’s dropped to an overbought level, signalling a pullback. So I’ve picked out the strongest and weakest stocks in the best and worst sectors to trade as the market could be preparing to lose steam.  

Roger’s Radar: Top Sectors for the Week Ahead 

As it has been for months now, Energy is still the strongest sector, and Devon Energy Corp. (NYSE: DVN) is still the strongest stock. I first started talking about this stock back in April when it was around $25 per share. Now it’s near $40 and still one of my favorites.

If you’re looking for something other than Devon, however, there are a lot of other good stocks in the Energy sector like Marathon Oil Corp. (NYSE: MRO), Diamondback Energy Inc. (Nasdaq: FANG), Occidental Petroleum Corp. (NYSE: OXY) and ConocoPhillips (NYSE: COP).

The weakest stock I’m looking at is in the beaten-down Communications Services sector.

The chart shows a huge drop off in March of this year and any time this stock rallies, I would fade it because I see weakness winning out in the near term. 

In this video, you’ll discover whether stocks are set to climb or drop… which report is making Wall Street traders nervous… which sector to buy and which to fade… why paying attention to bonds is a smart idea… and the best way to trade the market right now.

Jump in Before FDA Approvals

Aggressive “desk clearing” FDA approvals are fueling some of the easiest profits of 2021… And the next 61 days could be even bigger.

Researchers from Harvard and MIT noted in a recent report that “Approval spikes occur at the end of each calendar month,” and before the “end of the year in a kind of ‘desk-clearing’ activity.”

So dozens of stocks are set to pop in the next 61 days as the FDA clears its  backlog of drug approvals. 

Show Me How!

WRITTEN BY<br>Roger Scott

WRITTEN BY
Roger Scott

What to read next

Have any questions? Contact Our Customer Service Team