1 ETF, Option and Stock to Trade Thursday’s Big GDP Data

U.S. gross domestic product for the second quarter expanded at an annual pace of 6.7%, matching analyst expectations. This was the biggest economic report for this quarter, and now all eyes are on how the bond market will react. 

 In the meantime, I’ve picked out my favorite ETF, stock and option for Thursday’s big data — and more in this stock market recap.

Stock Market Recap

In Thursday’s stock market recap, stocks are mixed as the GDP data revealed that the economy’s running “hot” despite the delta variant and supply chain issues.

Small caps and other speculative stocks tend to experience bullish rallies after a pullback. And the gap between large caps and the rest of the market has narrowed according to momentum levels.

So keep your eye on the bond market as they continue to put pressure on stocks this week. Investors weigh stocks compared to bonds and their related risk. We have earnings next week, which will be a chance for stocks to prove their worth — especially when bond yields get more attractive. 

Roger’s Radar: Top Plays for This Week

The Consumer Discretionary sector is just killing it right now. I’ve been following the S&P 500 Consumer Discretionary Sector SPDR (NYSE: XLY) closely, waiting for XLY to break out as it’s trading close to a resistance level. 

I give out an option trade on XLY in this video and also talk about the best stock within this sector, plus an option spread to trade it!  

In this video, you’ll discover why Thursday is a huge day for the markets… why we need to keep our eye on bonds… an update on momentum for small caps… the top sector ETF right now… the top stocks right now… and the best option and spread to buy today.