This will be a defensive market until the SPDR Dow Jones Industrial Average ETF Trust (NYSEArca: DIA), which tracks the Dow, is trading above its 50-day moving average for at least two days. So I’m sticking to pullbacks and I’ve picked out one REIT and one ETF that are ready to bounce — and more in Tuesday’s stock market recap.
Stock Market Recap
In this stock market recap, global stocks are mixed as investors await this week’s inflation data.
The bond market rallied after Tuesday’s better-than-expected Consumer Price Index data. Keep your eye on the markets as we continue to receive new economic data every day this week. The global economy, COVID-19 and interest rates are dominating investor sentiment, and will likely define how stocks perform in the short term.
Industrial production rose 0.4% in August. However, import prices fell for the first time in 2021. Supply chain shortages, Hurricane Ida and the persistent pandemic have likely slowed inflation levels that investors were worried about, further complicating the bond tapering timeline.
The market is weaker right now. Only 38% of stocks are trading above their 50-day MA, and 48% are trading above their 200-day MA. While conditions are likely to remain choppy, global catalysts could move this sensitive market. So we need to be careful with our trades and remain defensive.
Roger’s Radar: 1 REIT and 1 ETF Outperforming
I’ve identified a REIT and an ETF that are outperforming as the market lags. Life Storage Inc. (NYSE: LSI) is pulling back to its 50-day MA and could bounce back strong. LSI has seen a strong upward trend in 2021. The REIT has a one-year return of 73.54% and will look to continue its move up.
The second play is an ETF and has been described as a “pure play on the price of carbon.” It’s also been in a solid upward trend in 2021 and has a year-to-date return of 56.18%.
I also included a more speculative stock in Wednesday’s video that has a one-year return of 222%! Make sure to watch it to find out which AI-enabled, cloud-based software company is crushing it.
In this video, you’ll discover what to expect from the bond market in the next few sessions… whether stocks will stay choppy or reverse higher once again… which industry and sector I’m following closely… and the top defensive pullbacks to buy right now.
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So instead of trying to pick stocks in overbought markets and interest rate-sensitive sectors… try trading stocks that have a 10-year track record of moving higher during these special prime time windows.