There’s still a lot of volatility in the market, and it remains to be seen exactly how things are going to shake out.
Not only are we waiting on some key economic reports, we’re also hearing rumblings of more trouble in China that could have far-reaching consequences.
In the meantime, I’ve picked out three stocks to short amidst the volatility — and more in Tuesday’s stock market recap.
Stock Market Recap
In Tuesday’s stock market recap, we’re looking at a lot of upheaval as we head into October, which is typically the most volatile month of the year.
China has shut down factories due to missed energy targets, and issues could continue as we head toward the holiday season. Nasdaq stocks and the bond market moved sharply lower Tuesday morning. If we get a solid Consumer Confidence report and gross domestic product figure, we could see bond yields rise even higher. In light of this choppiness, I’ve picked out three stocks to short a weak market.
Roger’s Radar: 3 Stocks to Short Amidst the Volatility
One of the companies I’ve got my eye on right now is CME Group Inc. (Nasdaq: CME).
This stock was a favorite last year but has now dropped below both its 50- and 200-day moving averages.
It’s now approaching both of those levels again but if it breaks lower, it could easily fall from $197 per share to about $185 or $184.
The other two names that could make great short trades are a pharmaceutical company, and a consumer lawn and garden products supplier, both of which are in huge downtrends.
In this video, you’ll discover how to trade the current market climate… whether bonds are set to rise or drop… what internals are pointing to right now…. three hot stocks and how to fade them for maximum profits.