There’s a lot of economic data coming out this week to look forward to…
We’ll learn whether the Federal Reserve will take any action on interest rates or the bond market. We’ll also see reports on jobless claims, consumer confidence and gross domestic product, all of which are going to give us a good idea of where the economy stands.
However, the market is still a little choppy, so I’ve picked out three stocks that could break down even further — and more in Monday’s stock market recap.
Stock Market Recap
In Monday’s stock market recap, we’re looking ahead at a heavy week of economic data. The biggest report of the quarter, the GDP, will be released on Thursday. We’re bullish on the Nasdaq but not yet bullish on the S&P 500. The put/call ratio and volatility indicators are high but within the normal range.
Any news affecting the Fed’s decision for tapering could send the bond market rallying. Even if we go long, we should have some exposure to the downside. So I picked out three weak stocks that could break down even further.
Roger’s Radar: 3 Stock for Downside Exposure
If we get word from the Federal Reserve that interest rates will head higher, financials will follow suit. So banking stocks should be looking good right now.
But Prosperity Bancshares Inc. (NYSE: PB) is struggling. The stock is stuck in the pattern of a classic pullback, hitting lower highs and lower lows.
It’s around $70 a share, has already fallen below $66, and could drop to the $64 level.
The other two companies I’m watching are an American automotive supplier that’s steadily falling, and a pharmaceutical company that peaked back in May. The pharma stock has been up and down since, but its lows are getting lower and it’s likely to fall significantly over the next week or so.
In this video, you’ll discover what the Dow Jones is telling us… whether bonds have more upside… whether the VIX threshold levels were hit… the No. 1 sector you need to pay close attention to… and three stocks to fade right now.
