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1 Long and 1 Short Trade as the Bond Market Bottoms

by | Jan 5, 2022

Momentum levels are rising and the Russell 2000 is set to break out as the bond market bottoms — and more in Wednesday’s stock market recap.

Momentum is one of the internals I like to keep an eye on because it can help us identify whether the market is strong or weak…

And for the first time in a while, more than 50% of all stocks priced above $2 trading above their 50-day moving averages.

The chart for momentum levels exhibited what’s called a double bottom, and is now starting to break out to the upside.

This is a bullish sign, and the chart for the Russell 2000 looks almost exactly the same, indicating it’s also poised to move higher.

We’re also seeing the bond market finally bottoming out. And with interest rates set to move higher, I have one trade set to benefit and one that won’t, both with an option pick! 

Elsewhere in the news, Chicago Public Schools, the third-largest school district in the country, voted to cancel in-person classes and return to remote learning due to the surge in COVID-19 cases.

The Centers for Disease Control and Prevention is set to meet on Wednesday to discuss COVID-19 boosters and their use, as well as updating isolation guidelines.

In this morning’s stock market recap video, you’ll learn whether I’m bullish or bearish on bonds… whether volatility will pick up or stay calm… how to analyze the top 100 Nasdaq stocks… which sectors will stay bullish and which will turn bearish… the major levels for small caps… and a long and a short trade with an option pick for each. 

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: 36,799.65. 
  • Futures: 36,683. 
  • Change: +8. 

S&P 500 (mini)

  • Close: 4,793.54. 
  • Futures: 4,782.5. 
  • Change: -1.75. 

NASDAQ (mini)

  • Close: 16,279.73. 
  • Futures: 16,196. 
  • Change: -79.75. 

RUSSELL (mini)

  • Close: 2,268.87. 
  • Futures: 2,267.4. 
  • Change: +0.9. 

Note: Updated as of 9:16 a.m. EST  

P.S. Is January the Best Month for Trading?

Joy of the Trade Head Trader Jeff Zananiri sure thinks so!

And Jeff is hosting a LIVE educational class today at 1 p.m. EST to teach everyone why he loves a special strategy in particular…

“There’s no doubt in my mind, this is the top trading strategy for the next 30 days,” Jeff said. 

Last January, this exact strategy pulled a fat 210% winner from the market. 

So be there Wednesday LIVE, when Jeff will reveal his No. 1 trading strategy for January…

And Get This FREE Report!

Building on the sector analysis from Tuesday, I’ll take things a step further every Wednesday with two FREE trade alerts! I’ll identify my favorite stock in the strongest sector, and even a short opportunity from the weakest sector. That’s two trades… absolutely free… each week!

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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