When you combine low liquidity and large amounts of market-moving data, you get more volatility — so expect to see more of it in the near term. But there are still good opportunities out there. And I’ve identified four congestion breakouts, one pullback and one stock breaking down — and more in Friday’s stock market recap.
Stock Market Recap
In this stock market recap, global stocks are higher after the Federal Reserve’s Jackson Hole event.
Fed Chair Jerome Powell said the bond-purchasing taper could begin by the end of the year, but doesn’t think we are quite there yet. Keep your eye on the bond market. The Afghanistan and COVID-19 situations could alter our economic rebound and, ultimately, the Fed’s plans.
Individual sectors aren’t looking good right now. The only one that stands out for me is the Health Care sector. All other sectors look weak or choppy. The put/call ratio showed the market going from overbought to oversold levels in one day. This is a choppy market and we could continue the trend in the near term.
Investors should look for stocks that are consolidating and bucking the trend.
Roger’s Radar: 1 Bearish, 5 Bullish Plays to Trade Huge Fed Data
Life Storage (NYSE: LSI) is a real estate trust that manages and acquires self-storage properties. LSI has a one-year return of 78% and has been on a solid upward trend for six months. A lot of people are moving their stuff into self-storage units and LSI is likely to continue benefiting from it.
The other three stocks consolidating with breakout potential are an insurance company, another REIT dealing with single-tenant commercial properties, and a gaming company I’ve recommended before. The pullback I picked out is a defensive play falling toward its 50-day moving average. The bearish play for Friday is a stock that has made lower lows before bouncing to its 50-day MA.
In this video, you’ll discover which sector is bullish right now… whether the markets are trending higher or choppy… what clues the put/call ratio is telling us… likely bond market movement over the near term… what the Fed data is showing us… and five bullish and one bearish play for Friday.
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Check back each morning for Roger’s Radar and the most important news and numbers in the WealthPress stock market recap.