The stock market opened lower this morning after tech giants Apple and Amazon missed earnings estimates. Supply chain issues have plagued world trade and are showing the detrimental effect on companies’ bottom lines this earnings season — and more in Friday’s stock market recap.
The put/call ratio, fragmentation in the S&P 500 sectors and relative strength index levels have been pointing to a cooldown. Investors should consider holding less tech stocks and more blue chips.
Stock Market Recap
In Friday’s stock market recap, U.S. stocks opened lower and then moved into neutral territory late in the morning.
I started raising my short exposure last week after indicators showed signs of an overbought market. This doesn’t mean we’ll see a market crash… It just means we can expect a healthcare pullback because we moved too high, too fast.
The University of Michigan’s consumer sentiment survey showed a consumer sentiment index of 71.7 for October. This beat analy’s expectations of 71.2, but moved lower from September’s 72.8. Supply chain issues and inflation worries are still impacting consumer sentiment and could continue as we near the holiday season.
Roger’s Radar: Top Sectors to Trade Ahead of Market Shift
China is having issues with coal and is now buying some from Australia after a previous ban. Energy stocks have been doing well and continue to lead the S&P 500 sectors. Increased energy consumption this winter could drive this sector even higher.
Be careful with tech stocks. Consumer staples and industrial names are defensive plays that may benefit from the market shift. Check out Friday’s video to learn what kind of stocks to substitute for your tech plays.
In this video, you’ll discover why the Nasdaq is struggling Friday… what market internals are pointing to… whether blue chips will rally again… how bonds are reacting to stock market pressures… which sector to avoid in the next few weeks… if market fragmentation is going to continue and for how long… and the best way to hedge yourself right now.
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.