The Energy, Healthcare, Communications Services and Information Technology sectors look great right now. We are back in a twilight zone between blue-chip and tech stocks. Pullbacks are some of the greatest opportunities to trade in this environment. I’ve identified two low-risk, high-probability pullbacks — and more in today’s stock market recap.
In the stock market recap, global stocks are mixed as investors await Thursday’s gross domestic product report.
If we see a higher GDP number than the 6.4% consensus, inflation worries and pressure on the Federal Reserve to act will rise. The Fed believes inflation to be transitory — meaning temporary —and is concentrated in areas dealing with supply shortages. A weaker GDP would back the Fed’s outlook and likely keep its economic support in place.
Lower interest rates allow investors to price in bigger returns for tech companies and drive those stocks higher. Higher interest rates make bonds more attractive as the returns will be higher with a lower risk profile.
After a one-month rally, Focus Financial Partners Inc. (Nasdaq: FOCS) has gapped down. Stocks tend to fill those gaps and retest recent highs. FOCS provides wealth management services to high-net-worth clients.
The second stock I’ve identified is a tech research and development company. It has pulled back to its 50-day moving average in the last two weeks. It’s currently trading at around $75. If it bounces back, it could go all the way to $84.
In today’s video, you’ll discover whether volatility will pick up or decline in the next 48 hours… the biggest report from the Fed to pay attention to… whether bonds will decline or rise sharply… whether the S&P 500 is vulnerable to downside pressure… and two hot pullback stocks to buy right now.
Recent volatility and inflation speculation has some investors acting like gamblers with their retirement funds. Chasing lost money… panic buying and selling… It’s sad.
Casinos can be fun, but leave the gambling mentality at the door when trading.
If traders can keep their heads on their shoulders and work a solid plan, history shows that these markets are exactly where they make good money.
There’s a strategy that trades stocks and ETFs that are linked. One of these will do better than the other on a consistent and measurable basis, and this strategy works in all market conditions!
Check back each morning for Roger’s Radar and the most important news and numbers in the WealthPress stock market recap.