Overbought levels and a handful of stocks pushing indexes higher have made the market vulnerable. I wouldn’t be buying large-cap stocks right now. I have two small caps on my radar that have made recent pullbacks — and more in today’s stock market recap.
In the stock market recap, global stocks are mostly lower after stimulus tapering talk and renewed inflationary worries put a damper on investors.
On Wednesday, the Federal Reserve released its minutes from June’s Federal Open Market Committee (FOMC). The minutes showed a positive outlook for the U.S. economy recovery but also included an August/September timeframe to announce reducing federal stimulus. The “talking about talking about” bond tapering has turned into talking about tapering.
The S&P 500 and Nasdaq are both down from all-time highs. While it might seem like markets are bullish, in reality, they are neutral. If large-cap stocks pull back, they will pull index levels down as well. The S&P 500 in particular has been pushed higher by less than 50% of stocks. We need a healthy pullback so that markets can push higher.
The bond market has pushed higher beyond its 200-day moving average, despite Wednesday’s news. I would be selling bonds at their current level. Bonds should revert to their overall trend, which is down.
Academy Sports and Outdoors Inc. (Nasdaq: ASO) is a sporting goods and outdoor recreation retailer. These stocks usually go up through the end of summer. It has a one-year return of 210.55%. With a market cap of $3.6 billion and a recent pullback, ASO has more upside potential.
The second stock on my radar is a media and entertainment company. This company also has a market cap under $4 billion and a one-year return of 267.60%. These small caps could continue heating up for the rest of the summer.
In today’s video, you’ll discover why the market is down sharply… whether bonds are done moving higher… which index offers the higher reward/risk opportunity… the best type of stocks to hold right now… and two hot stocks set to go higher.
The current market environment has made it harder than ever to pick promising stocks. Nasdaq stocks are overbought. Interest rates are set to rise as soon as the end of the summer. And hot stocks are harder to find compared to last summer.
The old “buy and hold” strategy may not be the best approach right now…
Investors need a more systematic approach… a way to find out what level to get in and out of the stock and what the profit target should be.
Well folks, I have a strategy that does just that. It accomplishes this by using what I call a “Sniper Line.”
This line has helped me achieve triple-digit gains on stocks, like 261% on NKE… 400% on DIS… and 740% on ANTM.
Check back each morning for Roger’s Radar and the most important news and numbers in the WealthPress stock market recap.