This is a huge week for economic data. Prices have spiked for economies all over the world due to problems arising from the pandemic, and we’ll get updated data on how much inflation is affecting consumers. The Federal Reserve is being pressured from hot inflation data on one side and continuing economic disruptions due to the pandemic on the other.
We should continue to look for pullbacks because the market will remain choppy. The put/call ratio is also overstretched, so I’ve picked out two stocks and one REIT to trade — and more in Monday’s stock market recap.
Stock Market Recap
In this stock market recap, global stocks are mixed this week as Asian markets fell while the U.S. opened slightly higher.
This week, we have the Consumer Price Index report on Tuesday, the Industrial Production report on Wednesday, the Philadelphia Fed Manufacturing Index and retail sales reports on Thursday, and the consumer sentiment on Friday.
The put/call ratio is telling us stocks are oversold and the market is overstretched to the downside. The market is choppy and the Nasdaq had a pullback the past couple of trading sessions. This means that stocks are likely to follow the choppy trend and bounce back.
The 11 S&P 500 sectors have shifted recently but fragmentation still exists. Markets start trending higher this time of year. I want to see the Consumer Discretionary sector break out. If it does, we may move to more typical market action.
Roger’s Radar: 3 Plays Ahead of This Week’s Big Market Data
Ebay Inc. (Nasdaq: EBAY) is pulling back to its 50-day moving average after making a swing high. EBAY has a one-year return of 38.69% and is a consumer discretionary stock. We could also see online activity increase if the pandemic worsens during fall and winter.
The second stock on my radar is the market and technology leader in on-demand business services. It’s also pulled back to its 50-day MA after a swing high. The third play is a REIT, and is the world’s largest IBX data center and colocation provider. After also making a swing high, it has pulled back and will look to bounce like the other two.
In this video, you’ll discover which sector is ripe with opportunities… how to take advantage of current choppiness… and major Fed data that could potentially move the markets this week.
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