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2 Stocks to Watch as Volatility Spikes on Earnings, Economic Data

by | Oct 12, 2021

The bond market is open, the stock markets are up, energy demand is soaring, banks start reporting earnings on Wednesday — and more in Tuesday’s stock market recap. 

This week, we’ll see some big reports including the Consumer Price Index, Producer Price Index and retail sales. These reports will give us a good idea how inflation is impacting the supply chain — and whether or not that inflation is being passed from producers to consumers, or being absorbed.

I’ll also reveal the strongest sector and its strongest stock, as well as the weakest sector and its weakest stock… 

Stock Market Recap

In Tuesday’s stock market recap, energy prices are surging as oil tops $80 a barrel while economies continue to recover from the pandemic as supplies continue to lag behind demand. 

But apart from the Energy sector, earnings season began this week and huge economic reports could build on current volatility. Momentum levels, however, point to a strong bounce back. 

So I’ve picked out the strongest and weakest stocks in the best and worst sectors right now. 

Roger’s Radar: One Strong Stock and One Weak 

The weakest sector right now is Utilities. It’s in a downtrend and below its 200-day moving average.

The weakest stock is electric utility company Pinnacle West Capital Corp. (NYSE: PNW), which is well below both its 50- and 200-day MAs. 

You could wait for it to return to the $71 level and sell it there.

The strongest stock is an Energy sector favorite I’m bullish on and have talked about several times recently.   

In this video, you’ll discover what’s driving stocks right now… an earnings preview… major reports scheduled for the week ahead… an update on market internals and the bond market… … the hottest sector and its strongest stock… and the worst sector and its weakest stock.

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WRITTEN BY<br>Roger Scott

Roger Scott

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