The best course of action right now is to focus on sectors that aren’t sensitive to interest rates. I expect some choppiness in the bond market and a cooldown in the next eight to 10 weeks. There’s a negative correlation between tech stocks and inflationary names in the Industrials and basic Materials sectors. I’ve identified a biotech and a health care company to trade this market — and more in today’s stock market recap.
But first…
Stock Market Recap
In the stock market recap, global stocks were mostly lower today after Wednesday’s Federal Open Market Committee announcement.
The Federal Reserve announced it expects its benchmark interest rate will rise twice by the end of 2023. The Fed had previously estimated no hikes before 2024. The central bank believes our economy has improved to the point where it can start considering a change in its bond purchasing plan.
The Import and Export Prices report came out Wednesday. The expected increase in May for export prices was 0.7%. The actual increase was reported at 2.2%. This is another sign of inflationary pressure rising.
Jobless claims rose this past week to 412,000 compared to the 376,000 the week prior. The four-week moving average for jobless claims is 402,500. Jobless claims had been falling, so as long as the number doesn’t go above the 500,000 level, we should be good.
Roger’s Radar: Top 2 Healthcare Stocks
I’ve highlighted Tenet Healthcare Corp. (NYSE: THC) before. Health care stocks are usually neutral to interest rates and go up when there’s uncertainty about interest rate direction.
THC has a one-year return of 198.88%. It provides health management solutions and technological improvements to health care systems and corporations.
The second stock on my radar is a biotech company that develops innovative medicines. It has a one-year return of 46.04%.
In today’s video, you’ll learn about the impact of the Fed’s FOMC meeting Wednesday… the most likely trading action in the bond market… the likely scenario for tech stocks… one sector that won’t be affected by Fed data… and two hot interest rate-resilient stocks.
P.S. Tom Busby is widely considered one of the top traders and researchers in the industry…
So when he said a four-day window is the most important ingredient for a string of triple-digit winners, it got our attention.
Tom explains how the same window repeats every week, and that’s what has delivered some of his best trades of the year.
Plus, it completely removes traders’ weekend risk exposure — which is critical in these volatile markets.
People could spend the weekend reading their favorite book, playing golf down in sunny Florida, or grabbing brunch with friends!
Tom’s strategy recently locked in gains of 11.26% on DIA… 30.49% on XBI… and even 48.48% on X.
