Stocks pulling back offer great opportunities when markets are fragmented and the short-term future is uncertain. These allow for lower-risk, higher-probability outcomes. There aren’t a lot of stocks on my radar today, but I’ve identified one pullback and one potential breakout — and more in today’s stock market recap.
In the stock market recap, global stocks are mostly higher as economic data generally matched analyst consensus.
The third estimate for our first-quarter gross domestic product remained unrevised at 6.4% growth. Jobless claims fell 7,000 to 411,000 this past week. Durable goods orders rose 2.3% in May compared to the 0.8% drop in April.
The bond market has established a long-term bearish trend and interest rates have nearly bottomed out. It’s important to be cautious with large-cap tech stocks right now. From an outside perspective, it looks like there’s a breakout. Only two-thirds of the Nasdaq 100 stocks are at all-time highs.
So internally, overall strength isn’t so clear. We could see a pullback in large-cap tech to the 50-day moving average or slightly lower.
The best thing to do right now is to avoid taking big positions because the market is fragmented. Pullbacks are looking a little choppy and breakouts overextended.
The Aarons Holding Co. (NYSE: AAN) has pulled back to its 50-day MA after a solid upward trend since February. AAN leases and sells home goods and has about 1,300 company and franchise stores in the U.S. and Canada.
The second stock I’ve identified is more of a congestion breakout. It’s a computer equipment name trading on the Russell 2000.
In today’s video, you’ll discover why the GDP report is so crucial… whether bonds will rally or drop… whether the Nasdaq is vulnerable to pullbacks… and which stocks to buy and sell right now.
Volatility is picking up after the Fed announced its benchmark interest rates will rise sooner than expected. When this happens, we’ll see a massive shift in the market. People who aren’t prepared and overly exposed will get burned.
Former Bern Stearns trader Jeff Zananiri created a strategy that allows investors to trade a market that is going up, down or sideways.
Jeff’s strategy is brilliantly based on a “money link” found between two stocks. Generally when one stock is rising, the other is falling — and vice versa….
Big-name Wall Street players have kept strategies like this a secret… But Jeff is giving everyday traders on Main Street a chance to even the playing field.
Check back each morning for Roger’s Radar and the most important news and numbers in the WealthPress stock market recap.