Markets are a little overextended and this week is no time to be a hero. Real estate companies have been doing well as our economy has picked up the past few months. I have one REIT and one bearish stock on my radar to trade this overbought market — and more in today’s stock market recap.
In the stock market recap, global markets declined and the U.S. is mixed after Wall Street made all-time highs this past week.
Investors are watching Asian manufacturing data to predict future supply chain problems due to shortages. These indicators are crucial for the global economy as Japan, China and South Korea are huge export grounds. It looks like we might see another major disruption in the product supply chain in the next month.
A key inflation measure is up 3.9% in the past year, according to the Commerce Department’s statement on Friday. This number is much higher than the Federal Reserve’s 2% target.
The bond market looks like it might be heading lower toward its 50-day moving average. This would put pressure on the stock market. We could see a cooldown — especially with fewer stocks pushing indexes higher.
Equity Lifestyle Properties (NYSE: ELS) is a REIT, which usually do well when businesses and the economy return to normal. You may want to wait for a pullback to the $74 level to trade ELS. If economic growth persists, we could see more upside for ELS and other real estate companies.
I haven’t identified a short trade in a while. Today’s short play is on a well-known sports equipment company. It has a one-month return of -7.66%. It made a 90-day low and then a 10-day high. It looks like it’s backing away from its 50-day MA and may dip even lower.
In today’s video, you’ll discover if stocks are overbought or oversold… which sector has more upside potential… which sector you need to fade right now… whether bonds will rally or fall back to their 50-day MAs… one pullback REIT to buy and one stock to sell right now…
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Investors are lining up to learn more about this strategy… especially with how vulnerable the markets are right now.
Interest rates could make some moves higher later this summer. So now’s the time to prepare — before the bigwig players on Wall Street move the markets.