The Nasdaq is now on its second day trading above its 50-day moving average. We might see a bump up in tech before a big rise in inflationary pressures. I’ve identified four tech stocks with breakout and pullback opportunities for this week — and more in today’s stock market recap.
Stock Market Recap
Global stocks are mixed today with limited action in overnight markets.
This week’s Federal Reserve theme is inflationary pressure. Jobs data this past week continued its positive streak. The International Trade in Goods and Services report is out today. Wholesale inventories data comes out on Wednesday. The Consumer Price Index (CPI) is scheduled for Thursday, and the Consumer Sentiment report comes out on Friday. Consumer sentiment is important because it impacts retail sales. And retail sales make up two-thirds of our gross domestic product.
The S&P 500 is near its all-time high and stocks continue to be overbought. The Nasdaq has been choppy because these stocks are more sensitive to changes in interest rates. The bond market is rising slightly. I expect the bond market to ultimately cool down and interest rates to rise in about six to eight weeks.
The market focus is on the Energy, Financials, basic Materials and Real Estate sectors.
Roger’s Radar: Top Breakout and Pullback Stocks
DXC Technology Co. (NYSE: DXC) provides IT services for large companies. This company tends to pick up steam as business and cloud technology companies do well. DXC has been moving up my relative strength scan.
It has a one year return of 126.65%. Technology business services are rising as we recover from the COVID-19 pandemic. DXC has been on a solid upward trend for the past three months. Traders may want to enter on a pullback, so make sure to keep an eye on this stock.
There is another name moving on my relative strength index that provides technology to the energy sector. I’ve also identified two pullback stocks. The first is a biopharmaceutical company with a one-year return of 227.03%. The second is healthcare technology-focused and aims to keep the global food supply free of contaminants.
In today’s video, I’ll go over why tech is sitting on a potential breakout… why bond markets are breaking higher… the relationship between inflation and tech stocks… a broad market review… big Fed data to focus on… and the top pullback and breakout 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 returns 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!