The put/call ratio jumped on Wednesday, showing the market is overly bearish. We’ve seen lower trading volume, however, so this indicator is more sensitive than usual. The Federal Reserve’s “Beige Book” report highlighted COVID-19, supply chain problems and labor shortages causing issues this summer.
So I’ve picked out three pullback stocks that could do well if we move toward a defensive climate — and more in Thursday’s stock market recap.
But first…
Stock Market Recap
In this stock market recap, global stocks are mostly lower Thursday after the Fed’s report outlined slowed economic growth this summer.
Jobless claims dropped sharply to a new pandemic low of 310,000. Fed officials have been considering dialing back bond purchases by the end of the year and raising interest rates. While lower jobless claims is good for the market, other factors like poor job creation in August, will be considered for the Fed’s timeline for policy changes.
The central bank’s Beige Book showed a slowdown in the economy this summer. It attributed the downshift to people dining out and traveling less — in large part due to the delta and other coming COVID-19 variants.
Due to the shortened trading week, activity has been slow. I expect institutional traders to come back to the fold starting Thursday,and we should see higher trading volume.
Roger’s Radar: 3 Pullbacks Set Up to Bounce Higher
It’s a good time to be exposed to global infrastructure like the Global X U.S. Infrastructure Development ETF (NYSE: PAVE). Constituents include Nucor, Eaton, Trane and other leaders in development. This is likely a good position trade in light of what we’re seeing with President Joe Biden’s infrastructure bill.
The second play for Thursday is a bank that would benefit from higher interest rates. I just issued a trade to buy the stock in our Overdrive Profits strategy Thursday morning. The third stock is up 125.88% this year and hasn’t been on my radar — until now!
In this video, you’ll learn about the Fed’s latest survey on business conditions… why the put/call ratio jumped on Wednesday… what to expect from the bond market… and three plays that could do well if we need to get more defensive in our holdings.
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Check back each morning for Roger’s Radar and the most important news and numbers in the WealthPress stock market recap.
