Fears of inflation are mounting ahead of Thursday’s gross domestic product report while more big tech stocks are reporting earnings — and more in Wednesday’s stock market recap.
Earnings are still coming in better than expected, and expectations are high. But we are moving from financials to tech stocks and other everyday companies, ones more likely to be affected by supply chain issues.
Stock Market Recap
In Wednesday’s stock market recap, global stocks opened lower after Australia announced a spike in inflation as China warned more real estate developers are likely to default. The market is overbought and we could see stocks trade down toward their 50-day moving averages. Overall, however, the market looks stable.
All eyes are on Thursday’s release of the latest GDP data. Consumer confidence came in above estimates, so there’s an expectation that GDP will, too.
Investors around the world worry other big economies will experience inflation as well. So I’ve picked out the top long and short trades to play the current market environment…
Roger’s Radar: 1 Long and 1 Short Trade as Fears of Inflation Spread
The long trade I’m looking at is healthcare stock Charles River Laboratories International Inc. (NYSE: CRL). Healthcare is one of my favorite sectors right now, and Charles River is a solid stock.
While it’s pulled back a bit and is trading near its 50-day moving average, it has a one-year return of 86%. I would buy it at the current level and ride it all the way to the top.
I’ll even give you an option trade to consider along with the stock in this video!
Today’s short trade is a pet care company that was a favorite during the pandemic, but has since fallen and presents a great short opportunity.
In this video, you’ll discover why bonds should trade higher in the near term… whether stocks are set to continue momentum-driven highs… what internals are pointing to right now… an update on whether sectors are fragmented… plus the top long and short positions for Wednesday.
P.S. Get in Before the Algorithms Move Stocks
Most people have no idea what happens behind the scenes on Wall Street.
But for the past 2 1/2 years, I’ve been researching how the market has changed… And there’s been a massive shift due to technology.
It all comes down to automated trading machines moving billions of dollars in capital. And now I’ve completed my most shocking work yet…
It gives traders access to what these algorithms are looking for, and allows them to get in on potential targets that could explode in the next few days or weeks.
