The Energy, Financials and basic Materials sectors continue to lead. I know I’ve been talking about these sectors for some time now, but it’s worked out. These are the sectors to be in as indices show overstretched levels — and more in today’s stock market recap.
In today’s stock market recap, global markets are mixed as investors look ahead to Friday’s U.S. jobs report for the month of May.
Stock markets are optimistic about strong economic recovery numbers, but also worried that the Federal Reserve might withdraw stimulus if the economy runs too hot.
We have another week full of economic data coming. The biggest report of the week, the Employment Situation Summary, is out on Friday. March’s employment situation missed expectations drawn from jobless claims, showing many Americans aren’t looking for jobs.
The put/call ratio is at .73. This means the market is getting a bit too bullish. When the ratio is below .75, it means the call-buying ratio is high. When it’s above 1, it means the put-buying ratio is strong.
Calls are bullish and puts are bearish.
We can see that the S&P 500 is getting choppy and losing steam. The Russell 2000 and the bond market continue to trade sideways as well. This is not a time to be a hero and enter trades in the large-cap Tech and Consumer Discretionary sector names.
There’s a strong negative correlation between the Russell 2000 and the bond market. I expect the bond market to break down toward the end of the summer, and small caps to start trending higher — but we’re not there yet.
American Homes 4 Rent Class A (NYSE: AMH) is a real estate investment trust. AMH focuses on fixing up and leasing single-family homes as investment properties.
AMH has been trading sideways for the past month after a strong upward trend. The stock has a one-year return of 52.22%. The rental property market is hot right now, and this stock is riding the real estate wave.
I’ve also identified a foreign currency ETF on a strong six-month bullish trend, and a metals company sitting near all-time highs.
In today’s video, I’ll go over why the put/call ratio reading is crucial right now… why the overall market is losing volatility… whether the small caps are ready to rally… the top performing sectors right now… and what prime stocks to focus on.
Most traders don’t know this, but there’s a little-known glitch in the market that’s causing certain stocks to skyrocket…
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So now Wall Street legend and Forbes contributor Adam Sarhan is revealing the secret behind this market glitch that has made millionaires out of everyday traders in just a handful of months…
In other words, traders really can’t afford to miss this.
Check back each morning for Roger’s Radar and the most important news and numbers in the WealthPress stock market recap.