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The Strongest, Weakest Stocks Ahead of the Fed’s Bond-Buying Reveal

by | Nov 2, 2021

The markets are subdued as investors await an announcement from the Federal Open Market Committee Meeting on Wednesday — and more in Tuesday’s stock market recap.

It’s common for the markets to be calm before such announcements, as it’s hard to determine what the Federal Reserve will decide.

Stock Market Recap

In Tuesday’s stock market recap, companies have enjoyed better-than-expected earnings, sending shares for many higher despite supply chain issues and concerns over inflation, which is at its highest level in 30 years.

Momentum levels in the S&P 500 and Nasdaq are pointing to a pullback. We could see speculative stocks cool off and defensive stocks rally.

Small caps, however, aren’t over-extended and have room to run higher. Keep your eye on the bond market as it’ll be directly affected by this week’s economic data and announcements. 

Expect choppiness as we near the Federal Open Market Committee’s announcement on Wednesday. I’ve picked out the strongest and weakest stocks to be able to play both directions of the update on whether the central bank will end its bond-buying program. 

Roger’s Radar: The Energy Sector Is Still Hot 

Energy is still the strongest sector, and the strongest stock would be Tesla Inc. (Nasdaq: TSLA) — if you consider Tesla an energy stock. And that’s valid, since the company’s business and purpose are so intertwined with energy.

But if you don’t consider Tesla an energy stock, the strongest is still Devon Energy Corp. (NYSE: DVN). I’ve covered Devon multiple times in recent weeks, and we recently took profits on the company in my Alpha Rotation service. 

The stock is a little soft right now but I would buy it around the $40 level, as it could have another run up left. 

The weakest sector is also one we’ve covered before so I revisit a stock that’s fallen flat, and give you a new one that still has some movement left in it.

In this video, you’ll discover which sector is leading… the top index right now… which stock is the strongest and which is the weakest… why Wednesday’s report is crucial… an update on the bond market… and an update on market sentiment. 

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Joy of the Trade’s Jeff Zananiri has a proprietary market scanner that allows him to isolate NINE trades most likely to go up, every single month. 

Each trade benefits from a massive wave of capital that floods the market like clockwork, giving “in the know” investors the ability to trade with confidence. 

This century-old market phenomenon is well-known by Wall Street, and usually stays between insiders. 

But Jeff is pulling back the curtain, giving investors the inside edge they need!

Market Scanner Access

WRITTEN BY<br>Roger Scott

Roger Scott

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