The market has been making record highs, but only 54% of stocks are trading above their 50-day moving averages. Meanwhile, the put/call ratio has been rapidly shifting from overbought to oversold. Investors should look at opportunities to trade both sides of this market, so I’ve picked out two plays for today — and more in Wednesday’s stock market recap.
Stock Market Recap
In this stock market recap, global stocks are mostly higher despite slowing manufacturing activity in Asia.
Supply disruptions, falling consumer confidence, rising delta variant cases and a weak jobs situation continue to affect the bond and stock markets. A monthly index showed Chinese manufacturing activity contracting for August. India and Indonesia also experienced a decline in manufacturing activity.
The S&P 500 sectors continue to show fragmentation, with the Consumer Discretionary sector trading away from the Information Technology sector. Large caps are stretching the market toward the upside as other stocks remain choppy. This environment could be fixed by a cooling down period — and we could see that happen soon.
Roger’s Radar: 1 Bullish and 1 Bearish Stock
TJX Companies (NYSE: TJX) is a bargain brand department store company. Its brands include TJ Maxx, Marshalls, HomeGoods and Sierra. With troubles persisting because of the delta variant spread, people are looking for ways to save money. One of these ways is to find bargains on clothes and home goods. TJX has pulled back to its 20-day moving average from a swing high, and we could see TJX bounce back even higher.
The bearish stock has the same technical pattern as TJX, but to the downside. It’s a specialty construction and infrastructure company that’s dipped after making a high of $41.12 on March 12. This stock is set up to drop even further in the short term.
In this video, you’ll learn why the bond market is bearish… why stocks are choppy and listless… why the put/call ratio continues to chop… the top low-risk pullback to the downside… and the top pullback to the upside for high-probability gains.
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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.