The media has been doing nothing but stoking investors’ fears over the Evergrande situation this week. But their predictions are overblown and the market is preparing for a rebound. I’ll explain why, and share two low-risk defensive stocks — and more in Tuesday’s stock market recap.
Stock Market Recap
In this stock market recap, investors around the world are worried that Chinese real estate company Evergrande could have a ripple effect in China’s market that extends globally. This could however be an overreaction and an overdue technical correction in the U.S. market.
When we look at the put/call ratio, momentum levels and the S&P 500 sector alignment, recent news is already priced into the market. So I’ve picked out two low-risk defensive stocks that could move higher if the market turns bullish again.
Roger’s Radar: Two Defensive Stocks for a Bullish Market
Chubb Limited (NYSE: CB) has been pulling back toward its 50-day moving average, closing just above that level. But the company has done well so far this year, especially for a large-cap stock, so this could be a great entry point if the market rebounds.
And even though Chubb is a financial stock, it’s not speculative. The company is involved in things like property, casualty, health and life insurance — your staple financial products.
The second stock on my radar is a consumer “sin” stock. And the nice thing about these types of names is that they’ll go up even if the markets are a little iffy.
In this video, you’ll discover whether momentum levels are stabilizing… how to interpret volatility right now… if the put/call ratio is freaking out… and two hot defensive stocks to buy right now.
Little-Known Weekend Trading Secret
Most people have never heard about this…
But every Friday, just before the markets close for the week, Wall Street wires millions of dollars into very specific stocks.
Most of the time, it’s just before a big news release, a company merger, a drug approval, earnings or something that could send a stock soaring.
But anyone who can spot this specific Wall Street activity could place a simple trade Friday… And then have the chance to wake up Monday morning to some of the biggest weekend profits.
