loader image

Fade Friday’s Rally With These 2 Bearish Pullbacks

by | Sep 10, 2021

Don’t expect much from this market — and don’t be fooled by this morning’s short-lived rally — as momentum levels, fragmentation and divergence indicate a different story. Bonds are choppy and trading in a downward channel, so I expect them to break even lower before the end of the year. 

However, it’s a good opportunity to fade stocks as we experience a rally in a choppy market. That’s why I’ve picked out two short trades to end the week — and more in Thursday’s stock market recap.

But first…

Stock Market Recap

In this stock market recap, global stocks are mostly higher as President Joe Biden and China’s Xi Jinping had a call to discuss working together on important issues. 

The European Central Bank is dialing back its emergency pandemic support as 19 of its countries bounce back. The Federal Reserve expects it will do the same on U.S. stimulus by the end of the year. The delta variant, consumer confidence, spending, supply chain issues and the jobs situation have delayed the bond tapering so far. 

The Bureau of Labor Statistics released its Producer Price Index (PPI) for August. The month-over-month index rose 0.7%, compared to the expected 0.6%. The year-over-year final- demand prices increased 8.3%, matching analysts’ forecast. 

We’re still in September and most institutional traders haven’t returned to the market just yet. I’m bearish for now and I don’t expect much trading volume until next week. 

Roger’s Radar: 2 Bearish Pullbacks to Trade the Rally

GoDaddy Inc. (NYSE: GDDY) has made lower highs and its 200-day moving average is above its 50-day MA. If GDDY breaks the $69 level, it could go down to $40. The domain name industry is saturated and GDDY doesn’t have the market share it once had.

The second short play is on a mental health care company. The stock has a one-year return of only 18.93% and has pulled back up to its 50-day MA. These are two weak stocks that could break down even further since Friday’s rally didn’t hold up. 

In this video, you’ll learn how to trade the current choppy market… the type of trading action internals are pointing to right now… the biggest global news impacting bonds… and two hot pullback stocks for big opportunities to the downside. 

P.S. The Strategy to Implement Before the Market Moves

Imagine if a strategy existed that allowed investors to make money regardless of the direction the stock market goes… 

Well, folks, you don’t have to imagine!

Wall Street legend Chuck Hughes has a strategy that’s giving everyday traders the chance to profit on thousands of stocks — regardless if the market is up, down or flat. 

Investors are lining up to learn more about this strategy… especially with how vulnerable the markets are right now. 

Interest rates could make some moves later on this year. So now’s the time to prepare — before the bigwig players on Wall Street move the markets.

Click Here to Unlock It

WRITTEN BY<br>Roger Scott

Roger Scott

What to read next

Have any questions? Contact Our Customer Service Team

Share via
Copy link