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My Indicators Were Right. Trade This 1 Stock in the Top Sector

by | Oct 7, 2021

Stocks are higher this morning after sliding Wednesday — and more in Thursday’s stock market recap.

While there isn’t an initial catalyst pushing the market up, jobless claims came in at a significant decline of 326,000 vs. 345,000 expected for the week ending Oct. 2. Jobless claims came in at 364,000 for the week ending Sept. 25. 

If stocks are able to break through their 50-day moving averages, it will be extremely bullish. So I’ve picked out the top ETF and the best stock and option to trade within the sector 

Stock Market Recap

In Thursday’s stock market recap, we take a look at stocks making a rebound and the positive news that may add to short-term momentum. 

Volatility is down and the put/call ratio is retreating after being stretched to the downside. Stocks could return to overbought levels in the next couple of weeks. When we consider momentum levels, however, there doesn’t seem to be a strong directional bias. 

Small caps are more speculative. They have held up better than large-cap stocks and are more speculative. Small caps opened above the 50-day MA and if other stocks in the market also break through, we could see a strong bullish move up. 

Markets were set to open higher with no big catalyst. We then had a positive jobs report and the Senate announced a short-term deal to raise the debt ceiling. Friday’s Employment Situation could move stocks even further.

Roger’s Radar: Top Stock in the Strongest S&P 500 Sector 

The  Energy Select Sector SPDR Fund (NYSEArca: XLE) tracks the Energy sector, which is currently the strongest within the S&P 500. It’s had an average gain of 8.64% in the past three months. 

So I’ve picked out the strongest Energy stock… and an option play to trade it! We may want to wait for a pullback but when the market rallies, we usually see the strongest stocks rally first. 

In this video, you’ll discover why small caps are at key levels… how to play the bond market in the short term… an update on crucial momentum levels… the strongest ETF with pullback price levels… and the best stock and option in that sector right now.


Use the Loophole Few People Know About

Tom Busby is widely considered one of the top traders and researchers in the industry…

After his three-plus decades of trading professionally, he figured out a brilliant way to use a little-known secret…

And it’s all thanks to a “loophole” in the market that can create moonshot trades on 10- or 20-cent option contracts… Tom finds these loopholes on the “secondary market.”

Some people have never heard about the secondary market… It’s a completely overlooked part of the options market most traders and investors don’t understand or even know exists.

And thanks to Tom, everyone can now use this loophole to access great opportunities — and moonshot trades!

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WRITTEN BY<br>Roger Scott

Roger Scott

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