3 Pullback Opportunities as the Market Looks Ready to Bounce

by | Oct 4, 2021 | Market Updates

The beginning of October ushers in the most volatile month of the year.

As we’ve discussed in our stock market recaps, the volatility came early this time, jump-started by several headlines out of China — namely Evergrande’s debt crisis. China is also experiencing rolling blackouts and factory shutdowns in an effort to reduce energy usage, which will only serve to exacerbate supply chain issues.

And supply chain issues are going to be the theme of the week. We’re expecting a lot of reports that will shed some light on its effects on our economy, such as the International Trade in Goods and Services report.

So let’s take a look at the biggest threats and opportunities in the market, including three stocks set to move higher over the coming weeks. 

Stock Market Recap

In Monday’s stock market recap, stocks are mixed as investors end a losing September and start the most volatile trading month of the year. 

Stocks started the week lower after Chinese real estate company Evergrande’s shares were suspended from trading. Investors were focused on interest rates, inflation and the Federal Reserve last week. This week, we’ll see economic data to gauge supply chain issues. Momentum levels show the downside for stocks could soon be reaching an end.

October, however, is historically the most volatile month of the year. So I’ve picked out three hot stocks pulling back to their 50-day moving averages to start off this week. 

Roger’s Radar: A Play on the Semiconductor Shortage 

The first stock is ON Semiconductor Corp. (Nasdaq: ON).

Semiconductors are a hot sector of the market right now, and supply chain shortages are only driving up demand.

The stock has pulled back toward its 50-day moving average at around $45 per share. This is a great level to buy in, and it could easily go as high as $50 to $52 over the next few weeks.

The other two stocks pulling back to their 50-day MAs and poised to jump higher are a shipping services company and a food delivery service. Both should see a lot more demand as winter approaches.

In this video, you’ll discover the biggest Federal Reserve reports of the week… the hottest stocks to trade… what’s going on with current momentum levels… the top sector to follow… and the biggest threats and opportunities right now. 

Use the Loophole Few People Know About

Tom Busby is widely considered one of the top traders and researchers in the industry…

After his 30-plus years of trading professionally, he figured out a brilliant way to use a little-known secret…

And it’s all thanks to a “loophole” in the market that can create Moonshot Trades on 10- or 20-cent option contracts… Tom finds these loopholes on the “secondary market.”

Some people have never heard about the secondary market… It’s a completely overlooked part of the options market that most traders and investors don’t understand or even know exists.

And thanks to Tom, everyone can now use this loophole to access great opportunities — and moonshot trades!

Get Your Moonshot Trades Now

 

 

WRITTEN BY<br>Roger Scott

WRITTEN BY
Roger Scott

What to read next

Have any questions? Contact Our Customer Service Team