Momentum levels have increased even further and investors should be cautious. One stock on my radar resides in a sector that is set to outperform as we transition away from stay-at-home stocks — and it isn’t overbought like the majority of the market.
Federal Reserve officials acknowledged on Wednesday that inflation has risen, but that’s temporary, they said. Commodity prices have also risen, and we could see even wilder inflation with all of the stimulus money that has been injected into our economy.
In today’s stock market recap, global markets are pushing forward in anticipation of big U.S. economic data, and after President Joe Biden laid out a massive education and family stimulus plan.
This quarter’s gross domestic product report is out today. Analysts expected a 6.5% improvement in the quarter-over-quarter annual rate, and a 10.5% improvement in the personal consumption expenditures annual rate. That’s an ambitious number and the actual results will likely drive the market.
The S&P 500 is at an all-time high, and 94% percent of stocks are trading above their 50-day moving day averages. It’s only a matter of time until we see a correction toward the 50-day lines and reset momentum levels.
I expect long-term bonds to stay between 1.5% to 1.7% for now, and later rise up to 2.5% by the end of the year. Remember, there’s an inverse relationship between interest rates and the bond market. As interest rates go up, the bond market goes down.
I have one stock on my radar this morning that you don’t want to miss. This company produces display technologies, optical communications, specialty materials, environmental technologies and life sciences. This technology company is in the electronic components industry, and it conducts business globally.
This tech company has had four consecutive quarters of positive earnings estimates and surprises. It’s currently trading around $45, and analysts have a high price target of $55. The company has been around for almost 170 years, and its momentum levels mark a big contrast from the rest of the market.
In today’s video, you’ll discover current expectations based on Fed data… whether bonds will trade higher or lower… how to determine if stocks are overbought… and the top low-risk pullback opportunity.
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