Inflation data is dropping on Wall Street this week as the S&P 500 and Nasdaq are at record levels. Stocks continue to be overbought as investors don’t expect a change in the short-term monetary policy of the Federal Reserve. I’ve identified four plays that are bouncing back from oversold levels after pullbacks — and more in today’s stock market recap.
In the stock market recap, global stocks opened mostly higher after large-cap tech stocks posted an all-time-high in the Nasdaq.
The Producer Price Index, Industrial Production and Retail Sales reports come out today. These reports should give us an idea of what to expect from the Federal Open Market Committee meeting on Wednesday.
Retail sales fell 1.3% in May, which was more than expected. A drop in auto sales and a shift from stay-at-home goods to services contributed to the fall. The Producer Price Index rose 0.8% versus the 0.6% economists estimated for May.
If the Fed announces any easing in stimulus or interest rates, the bond market will likely drop. This would allow for basic Materials, Industrials and Energy sector stocks to rise again. Defensive stocks would benefit from an increase of inflationary pressure.
Evoqua Water Technologies Corp. (NYSE: AQUA) provides water treatment solutions through services, systems and technologies. AQUA trades on the Russell 2000 and provides water solutions to municipal and industrial clients.
AQUA has a one-year return of 84.78% and just came off of a multi-year high. I like tech stocks that have everything to do with the commodity or industrial markets — and this stock is one of them.
Another play is a foreign-country ETF that will look to test new highs. The third play is on the second largest telecommunications company in Canada. The fourth play is what I call a “Gilligan’s Island.” This is when a stock makes an all-time high and gaps down. It’s on another telecommunications stock that will try and fill the gap.
In today’s video, you’ll learn about my preview of Wednesday’s big Fed report… the action happening in the long bond… the major reports to pay attention to this week… communication stocks and global ETFs… and four hot pullback opportunities happening right now.
Tuning out all the noise every Friday night, Saturday, Sunday and Monday… A three-day weekend, every weekend!
After his 30-plus years of trading professionally, Tom Busby figured out a brilliant way to do just that…
And focus solely on trades that Wall Street could push higher.
In his research, he found a little “Tuesday morning tip” that tells him exactly which stocks could explode over the next 96 hours…
Just last week, Tom’s strategy was able to lock in gains of 11.26% on DIA… 30.49% on XBI… and even 48.48% on X.
Check back each morning for Roger’s Radar and the most important news and numbers in the WealthPress stock market recap.