The Energy, Healthcare, Communications Services and Information Technology sectors look great right now. We are back in a twilight zone between blue-chip and tech stocks. Pullbacks are some of the greatest opportunities to trade in this environment. I’ve identified two low-risk, high-probability pullbacks — and more in today’s stock market recap.
But first…
Stock Market Recap
In the stock market recap, global stocks were mixed as investors await Thursday’s gross domestic product report.
If we see a higher GDP number than the 6.4% consensus, inflation worries and pressure on the Federal Reserve to act will rise. The Fed believes inflation to be transitory — meaning temporary —and is concentrated in areas dealing with supply shortages. A weaker GDP would back the Fed’s outlook and likely keep its economic support in place.
Lower interest rates allow investors to price in bigger returns for tech companies and drive those stocks higher. Higher interest rates make bonds more attractive as the returns will be higher with a lower risk profile.
Roger’s Radar: 2 Pullbacks for Today’s Environment
After a one-month rally, Focus Financial Partners Inc. (Nasdaq: FOCS) has gapped down. Stocks tend to fill those gaps and retest recent highs. FOCS provides wealth management services to high-net-worth clients.
The second stock I’ve identified is a tech research and development company. It has pulled back to its 50-day moving average in the last two weeks. It’s currently trading at around $75. If it bounces back, it could go all the way to $84.
In today’s video, you’ll discover whether volatility will pick up or decline in the next 48 hours… the biggest report from the Fed to pay attention to… whether bonds will decline or rise sharply… whether the S&P 500 is vulnerable to downside pressure… and two hot pullback stocks to buy right now.
P.S. Just because the market is an unpredictable mess doesn’t mean investors’ financial situation also has to be…
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There’s never been a better time for investors to add this strategy to their toolkit. We know interest rates will rise — we don’t, however, know when or how fast.
Jeff’s discovery centers around stocks and ETFs that are paired — one generally outperforms the other in a big way. It gives traders the ability to make moves in a market going up, down or sideways!
