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The Top Defensive Sector to Trade When Markets Are Volatile

by | Jan 27, 2022

There’s continued volatility in the markets this morning following comments made by Federal Reserve Chair Jerome Powell on Wednesday — and more in Thursday’s stock market recap.

Powell said the Fed “expects it will soon be appropriate” to raise interest rates, which will likely happen this March.

Major indices rose immediately following this statement, only to give their gains back as the day wore on and Powell took on more targeted questions about the central bank’s balance sheet. He also acknowledged high inflation and said businesses and consumers feel it hasn’t gotten any better.

In other news, the latest gross domestic product (GDP) data came in better than expected, indicating a strong end to 2021 despite the spread of the omicron variant. GDP for the fourth quarter was 6.9% versus an estimate of 5.5%. The annualized rate is 5.7%, the strongest pace the U.S. has seen since 1984 during the Ronald Reagan administration. 

In this morning’s stock market recap video, you’ll learn why bonds are so strong… whether volatility is peaking out… what a typical downside correction looks like… what market internals are pointing to… which sectors are rising right now… the most likely scenario for the Fed in the next few months… and how to stay safe in the current market cycle with the top defensive sector and an option pick! 

Don’t forget to like and subscribe to our YouTube channel if you haven’t already so you can be notified as soon as we post our next video and see what other trade opportunities we’re paying close attention to! 

Stock Market Recap: By the Numbers

This morning’s stock market futures recap: 

DOW (mini)

  • Close: 34,168.09.
  • Futures: 34,214.
  • Change: +159.

S&P 500 (mini)

  • Close: 4,349.93. 
  • Futures: 4,378.25. 
  • Change: +36.75. 

NASDAQ (mini)

  • Close: 14,172.76.
  • Futures: 14,313.75.
  • Change: +155.25.

RUSSELL (mini)

  • Close: 1,976.46.
  • Futures: 1,987.9.
  • Change: +15.3.

Note: Updated as of 9:19 a.m. EST  

P.S. This $2.3B Move Is About to Send Shockwaves Through Wall Street

Joy of the Trade’s Jeff Zananiri is putting together a master class workshop to teach everyone about “fade trading.” It’s a strategy he uses on a daily basis, and there’s plenty of opportunity left to play these sorts of trades. 

Wall Street often needs to recoup some quick cash… and how do the big hedge funds find it?

By selling off assets for a quick turnaround.

We can hop into these stocks at a great discount. And when the price recovers the next morning, we unload them!

Learn more about “fade trading” and sign up for Jeff’s workshop at 1 p.m. EST today!

Click Here Now 

Each Thursday, I’ll combine two of my favorite things into a big-money opportunity: options plays and ETFs. Using options, we can turn momentum analysis of a specific sector — or even an entire country’s stock market — into an actionable trade with double- or triple-digit upside potential. I’ll give you all the details you need to execute this plan.

Check back each morning for Roger’s Radar and the most important news and numbers in the WealthPress stock market recap.

WRITTEN BY<br>Roger Scott

Roger Scott

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