All eyes are on the Federal Open Market Committee announcement scheduled for 2 p.m. EDT Wednesday. Federal Reserve Chair Jerome Powell will also address the media at 2:30 p.m. EDT. Volatility should be subdued until after the announcement — and more in Wednesday’s stock market recap..
I picked out a stock that’s holding up well compared to the market and could bounce back if we see a reversal.
Stock Market Recap
In this stock market recap, stocks are mixed as investors learn more about the Chinese real estate situation with Evergrande, and await the FOMC announcement.
Two reports are moving markets right now. The first is real estate developer Evergrande’s plans to pay Chinese bondholders while defaulting on payments abroad. While the debt is $19 billion, it’s not as significant compared to money flowing in response to the pandemic’s disruption.
The second is the House of Representatives passed a spending bill overnight to raise the debt ceiling and avoid a government shutdown.
Keep your eyes on the indices to break through their 50-day moving averages, as this would be a strong bullish move. Volatility is moving lower, the bond market remains in its downward overall trend, and momentum levels have cooled. Look for movements in the bond market after the Fed update.
Roger’s Radar: My Top Stock For Wednesday
The market is starting to get increasingly choppy when we look at 90-day breakouts and pullbacks. My favorite stock for Wednesday provides cloud-based software for financial operations to small and midsize businesses. It has an incredible one-year return of 210.29%, holding up well as the market cooled down.
Check out my video to see four other pullbacks that caught my attention as I was recording.
In this video, you’ll discover what to expect before and after the FOMC meeting… what to look out for in the indices… what the put/call ratio and momentum levels are showing… an update on the Chinese real estate situation… and my top stock for Wednesday.
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