In the short term, Wall Street is more bearish than it seems. While a bigger cooldown is needed to return to a healthy market, sentiment levels are pointing to things bottoming out in the next few days. There’s been many pullbacks recently, and I picked out the top 3 that could make the biggest moves — and more in our stock market recap.
Stock Market Recap
In Thursday’s stock market recap, global stock prices are mixed as catalysts have been priced in while a lack of liquidity drives volatility.
Everything we know about COVID-19 from 2020 has been priced into today’s stocks. The unknown factor we experienced then isn’t present now, which led to the panic at the start of the pandemic. Sentiment levels are showing that the market could bottom out and stabilize in the next few trading days.
Only 50.65% of stocks above $2 are trading above their 200-day moving averages. Large caps continue to hold indices up. In the short term, the stock market is more bearish than it seems. The market capitalization issue and fragmentation will not be resolved until we have a big pullback. But considering the current put/call ratio and time of year, I don’t expect we’ll experience that cooldown right now.
Roger’s Radar: Top 3 Pullbacks Standing Out
Diageo Plc ADR (NYSE: DEO) is pulling back to its 50-day moving average while on a six-month upward trend. DEO is a food and drinks company with brands like Smirnoff, Johnnie Walker and Guinness to name a few. The stock has a one-year return of 41.07% as well as good relative strength.
The second pick is an environmental waste management company. This stock is pulling back to its 50-day moving average from a swing high, and has a one-year return of 80.28%. My third top stock for Friday is the world’s largest independent provider of semiconductor packaging and test services, and it has an earnings-per-share growth of 121.74% versus the previous year.
In Friday’s video, you’ll learn whether the put/call ratio is peaking… whether volatility is reverting to the mean… whether the S&P 500 is set to rise or drop… and the top 3 pullbacks for Friday.
Check back each morning for Roger’s Radar and the most important news and numbers in the WealthPress stock market recap.