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1 Weak, 1 Strong Stock for Market Internals Pointing to Higher Prices

by | Oct 5, 2021 | Market Updates

Tuesday will set the tone for the rest of the week, as several consumer reports are released — and more in Tuesday’s stock market recap.

The International Trade in Goods and Services report will give us an idea of how bottlenecks in supply chains are impacting the economy.

And the Institute of Supply Management Index will show us how consumer spending is holding up. 

We’re still in a choppy market, however. And to take advantage of that, we’re going to look at the strongest stock in the strongest sector of the market, as well as the weakest stock in the weakest sector. 

Stock Market Recap

In Tuesday’s stock market recap, we take a look at some of internals.

Momentum levels have been moving lower since April. Volatility is dropping Tuesday, and the put/call ratio is back in the normal range. Small caps are leading stocks in momentum levels, and all of these factors point to higher prices. Indicators are not showing much fear in the market. 

October is the most volatile, however. So that’s why we’re playing both sides in the stocks I’ve picked… 

Roger’s Radar: Profit From Winter Energy Woes 

As we head into winter, the strongest sector of the market is Energy stocks.

And the strongest stock is one of my favorites, Devon Energy Corp. (NYSE: DVN)… 

Devon Energy had a nice run-up lately and is close to $40 per share, so I wouldn’t say it’s a buy at this level.

I would wait until it pulls back toward the $30 level to buy in, and then hold on to my shares until the stock reaches $45.

The weakest stock I’m looking at is a beaten down household appliance and hardware manufacturer whose share price is low… and only getting lower. 

In this video, you’ll discover why momentum levels are showing signs of bottoming out… how much fear there is in the market… what inflation factors I’m watching right now… how much volatility there is after Monday’s dip… and the weakest stock in the weakest sector. 


Use the Loophole Few People Know About

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

After his three-plus decades 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 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

Roger Scott

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