Many indicators are pointing to a higher stock market. Shares are mostly higher Thursday morning after the Federal Reserve said it could announce its bond tapering plan in November, potentially raising interest rates in 2022 — and more in Thursday’s stock market recap.
The bulls will start to return as they see fears lessen. So I picked out two stocks to trade as the market regains strength, and one weak stock to short.
Stock Market Recap
In this stock market recap, stocks are mostly higher after Wednesday’s Federal Reserve update on its bond-purchasing program and potential interest rate hikes.
The put/call ratio has dipped below 1, which is within what I call the “random range.” Volatility is below 20 on the VIX, or “fear gauge,” which means below average volatility). More importantly, the S&P 500 and Nasdaq are positioned to break through their 50-day moving averages. Momentum levels are also showing a market that is strengthening. These are all bullish signs.
Investors are also reacting positively to the news that Chinese developer Evergrande will meet debt obligations this week. Worries grew earlier this week that Evergrande’s default could cause a trickle-down effect on the scale of the 2008 housing crisis. Though the debt is indeed massive, the pandemic itself wasn’t able to completely derail the global economy.
Roger’s Radar: 1 Bearish and 2 Bullish Stocks
Uber Technologies Inc. (NYSE: UBER) has been on a downtrend for three months. It bounced this week and could fill in the gap to the downside. The delta variant is still causing a lot of havoc and UBER will be negatively impacted so long as the pandemic continues.
My two bullish stocks for Thursday are a cloud data services/management company and an AI software platform company. Both stocks have shown strength as the market cooled down and could continue their upward trends as things rebound.
In this video, you’ll discover what the Fed is planning on doing in November… how the global economy impacts the bond market… which sector is leading right now… the top indicators to determine if the market is rising again… two low-risk bullish plays… and one low-risk bearish play.
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