This is a fragmented, holiday-shortened week and trading could be a little slow to get going. Bonds are breaking their 50-day moving average. The rise in COVID-19 cases has slowed down the economy and the job market. If we peak in the near future, we could see bonds go down even further. I’m not expecting a lot from either the stock or bond market, so I’ve picked out one short and two long pullbacks to trade this week — and more in Tuesday’s stock market recap.
Stock Market Recap
In this stock market recap, global stocks are mostly flat as the U.S. stock market returns from a long weekend.
The best three sectors right now are Real Estate, Information Technology and Health Care, while the weakest three are the Materials, Consumer Discretionary and Energy. Semiconductor, retail and travel stocks are amongst the weakest names in the S&P 500.
We could see the S&P 500 cool down to its 50-day moving average, so I wouldn’t be bullish on stocks the next few days. I’d be neutral, at best.
Roger’s Radar: 3 Pullbacks to Trade This Choppy Market
Nucor Corp. (NYSE: NUE) is the fourth-strongest stock in the S&P 500 and is pulling back toward its 50-day moving average. It could pull back all the way to its 50-day MA, but I wanted you to be aware of it since it’s performed so well recently.
The second bullish pullback for today is a retail consumer store with low-priced clothing. With COVID-19 cases affecting the economy and the jobs market, we could see higher demand for these retailers. The bearish pullback for today is on a company that provides government services and information technology support. It’s set up like our usual pullbacks, but to the downside.
The two other stocks on my radar are involved in the Energy sector, specifically solar panels. One of the two manufactures materials used in the panels. The fourth stock provides cloud-based digital banking solutions.
Check back each morning for Roger’s Radar and the most important news and numbers in the WealthPress stock market recap.