Investors are shifting toward defensive stocks as several big-name companies continue reporting earnings this week — and more in Wednesday’s stock market recap.

I’ve identified three stocks that are not overextended and are showing signs of breaking out. The first stock is a pharmaceutical preparations company that is making new highs after a month-long horizontal move. I also have a REIT, and a consulting and processing services company that are both showing consolidation and low volatility.

But first…

Stock Market Recap

In today’s stock market recap, global markets are mixed with the European and U.S. indexes slightly higher. Asian markets have been negatively impacted by COVID-19 worries while health care systems are strained.

There continues to be divergence in the S&P 500 and the Nasdaq, with the market showing fragmentation. Investors have shifted toward defensive stocks as the Energy, Financials, Real Estate and Industrials sectors lead the market.

Eighty members of the S&P 500 and roughly one third of the Dow report earnings this week. Analysts expect companies in the S&P 500 to report quarterly profits of 24%. The markets are likely to move if the actual numbers are different. 

Roger’s Radar: 3 Stocks Ready To Break Out

Macrogenics (Nasdaq: MGNX) has posted a 380% return over the past 12 months. After a month-long consolidation period, MGNX is making new highs amid a rocky market over the past few days. Stocks that are consolidating usually have less volatility. These tend to be lower-risk opportunities that could rise before another horizontal period. 

My REIT has returned 92.28% in the last 12 months. It is currently breaking out of an ascending triangle and moving higher. This company is primarily involved in the gaming, hospitality and entertainment destination industries. These companies will benefit from our economy opening back up. 

The third stock today is a well-known consulting and processing services company… 

In today’s video, I’ll go over how to determine if the market is fragmented… the top defensive sector to watch… how to avoid over-extended stocks… how to target low-risk opportunities… and I’ll give you my three low-volatility stocks.


P.S. Every Monday through Friday, I get to meet with members from our VIP Trade Room service. 

We cover topics like the strongest and weakest sectors… where I’d put my money over the next few weeks… and technical analysis from some of my favorite stocks, sectors and indexes. 

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