Stocks opened slightly lower as investors await Friday’s consumer sentiment data — and more in Friday’s stock market recap. This report tops off a week loaded with economic reports. When we look at stocks in the S&P 500 minus their market capitalizations, we see them sitting at the 50-day moving average.
So traders should be careful right now and not overstay their welcome in stocks. So I’ve picked out one low-risk pullback that could ride a Consumer Discretionary sector breakout.
But first…
Stock Market Recap
In this stock market recap, global stocks are mixed as investors digest a heavy week of economic data.
Retail sales reflect consumer sentiment so I expected a positive move. The index improved slightly from a 70.3 reading to 71 in August, missing market expectations of 72.2. Strong retail sales and consumer sentiment is bearish for the bond market because it would support the Federal Reserve’s plan to taper its bond purchases.
Travel stocks are some of the weakest in the S&P 500. Zoom Inc. (NYSE: ZM), which was a stay-at-home darling in 2020, is the weakest stock right now in the Nasdaq. We’ve seen a lot of the same names leading the indices for the past couple of months.
Roger’s Radar: My Top Pullback for Friday
It can be hard to time trades in a choppy market. Instead of trading breakouts, look for pullbacks to find low-risk opportunities. Today’s stock is a multinational tech company specializing in navigation, communication and information devices. It’s pulled back the past eight trading days after a strong six-month upward trend. If the Consumer Discretionary sector breaks out, like I predict it could, this company is one my favorites to do the same.
In this video, you’ll discover which sector is heating up the market once again… a probable scenario for the bond market and Dow Jones Industrial Average… the strongest and weakest stocks in the S&P 500 and Nasdaq 100… and one low-risk pullback in a hot stock right now.
Wall Street has been choppy of late, and it’s getting harder and harder to analyze the market.
There’s so much data pulling investors in different directions… like rising COVID-19 cases, an economy running too hot, then an economy slowing down, rampant inflation, bond tapering, rising interest rates and supply chain issues…. phew!
It’s a daunting task just to have a proper gameplan when the market opens these days…
But there’s a way to start each trading day with specific predictions on how stocks are going to move… and it all occurs before the opening bell!
It’s a pattern called “Early Bird Cash,” and the world’s No. 1 premarket trader is sharing it with investors who are ready to step up their game.
