Energy, Financials and basic Materials sector stocks will benefit from a potential shift in the market. Three stocks are on my radar today after making pullbacks to their 50-day moving averages. Inflationary stocks have lost steam but could bounce back in the near term — and more in today’s stock market recap.
In the stock market recap, global stocks were mixed today as investors digest the Federal Reserve’s latest economic outlook update.
Markets are up strong this morning. This week will see a big comeback after this past week’s drop. The bond market has moved higher and I don’t expect interest rates to go much lower from here — especially after the Fed announced it could modify support sooner than expected. Tech stocks are the most sensitive to interest rate hikes, and would take the biggest blow on rising rates.
About 30% of S&P 500 stocks are trading above their 50-day moving averages. We could see more upside in the S&P 500 because of subdued momentum levels and the possibility of an interest rate hike.
The quarterly gross domestic product report is scheduled for Thursday. The consensus range for GDP growth in the second quarter of 2021 is 6.4% to 6.6%. If a weaker number is reported, the current bond-purchasing program and interest rate levels are expected to remain in place. A higher GDP would fuel inflationary worries and highlight comments made by the Fed recently.
Simon Property Group (NYSE: SPG) is a real estate investment trust operating in the commercial sector. SPG deals with properties in premier shopping, dining, entertainment and mixed-use developments.
SPG has a one-year return of 79.99% and is near its 50-day MA. It looks ready for a comeback with a relative strength index number in the 30s after several days of selling amid a potential shift in the market.
I’ve identified an oil and gas stock that has a one-year return of 55.05%, and a consumer credit card company that has also pulled back recently.
In today’s video, you’ll discover which Fed report is instrumental in determining interest rate hikes… whether bonds will trade higher or lower in the coming days… if the S&P 500 momentum levels will move in the near term… how tech stocks will react to a change in interest rates… and the top blue-chip stocks to buy right now.
P.S. Legendary trader Tom Busby just discovered something shocking about the stock market…
He found a little-known pattern that occurs every Tuesday at 9:30 a.m. And traders who catch onto it could find themselves in the driver’s seat for the easiest four-day gains they’ve ever seen.
Remember this: In on Tuesday, out on Friday.
Tom kept this strategy to himself for a year…
But now that he’s been able to prove his theory on real-money trades with gains like 90% on RIOT and 122% on MRNA, he’s ready to go public.
And retail investors stand to benefit most!