We’ve been talking about a much-needed pullback to fix fragmentation and get back to a more consolidated market. And this could be a huge buying opportunity. So I’ve picked out four plays to trade this market pullback — and more in Monday’s stock market recap.
Stock Market Recap
In this stock market recap, global stocks are lower as China and interest rates pressure Wall Street.
The S&P 500 sectors are showing a recovery from the fragmentation we’ve seen in previous months. Monday’s pullback could be a representation of large caps consolidating and trading more in tune with the rest of the stock market.
The latest Federal Open Market Committee announcement is scheduled for Wednesday, and Federal Reserve Chair Jerome Powell will speak on Friday. Traders are also concerned about the debt ceiling and possible cuts if the cap isn’t raised. Chinese real estate developer Evergrande could default on its debt, which could affect other companies, industries and markets — hence Monday’s sell-off.
But this market could be a great buying opportunity. We don’t know exactly when it could bottom out, so make sure to spread your entries and don’t jump in all at once.
Roger’s Radar: Four Pullbacks to Trade Market Cooldown
Facebook Inc. (Nasdaq: FB) has been pulling back to its 50-day moving average, dipping below it this past trading session. It’s had a strong six-month upward trend, and this could be a great entry point if the market bounces.
The second stock on my radar is an energy company that dropped too far, too fast. I mentioned the third pick recently and it’s a communications company better known for its navigation business. The last pick is a real estate investment trust involved in the self-storage property business.
In this video, you’ll discover whether the sell-off is sustainable or a blip… what market internals are showing us… a big update on China and the Fed’s agenda… what bonds will likely do this week… and the top low-risk pullback opportunities for right now.
Wall Street has been choppy of late, and it’s getting harder and harder to analyze the market.
There’s so much data pulling investors in different directions… like rising COVID-19 cases, an economy running too hot, then an economy slowing down, rampant inflation, bond tapering, rising interest rates and supply chain issues…. phew!
It’s a daunting task just to have a proper gameplan when the market opens these days…
But there’s a way to start each trading day with specific predictions on how stocks are going to move… and it all occurs before the opening bell!
It’s a pattern called “Early Bird Cash,” and the world’s No. 1 premarket trader is sharing it with investors who are ready to step up their game.