Two REITs in the entertainment industry have recently pulled back. This is a hot industry that will continue to heat up with summer — and more in today’s stock market recap.
I have another stock I like in the Consumer sector, and one bearish play for a stock that’s currently breaking down.
But first…
Stock Market Recap
In today’s stock market recap, global markets are mixed as the U.S. posted weak jobs report numbers on Friday.
The markets view April’s jobs report as a signal that the Federal Reserve will likely keep short-term interest rates low. For comparison, the U.S. economy added 770,000 jobs in March.
Inflation worries rise as the Fed continues buying $120 billion in bonds every month and interest rates remain low. Investors believe the Fed would be forced to raise rates if inflation takes off.
This week, we have the consumer price index report on Wednesday, jobless claims and producer price index on Thursday, and the industrial production report on Friday. We should have a good idea of how much inflationary pressure there really is by the end of the week.
Divergence is present in both the S&P 500 and Nasdaq. This means prices are rising while momentum levels are falling. The combination of divergence and momentum is usually a sign of an upcoming correction.
Roger’s Radar: 3 Pullbacks and 1 Stock Breaking Down
Vici Properties Inc. (NYSE: VICI) is a REIT in the gaming, hospitality and entertainment destinations. These industries are where you want to be right now. VICI is based in New York and owns around 29 hotels, casinos and racetracks in the U.S.
VICI has a one-year return of 89.50% and recently pulled back from an all-time high. These types of stocks will benefit from the ongoing economic expansion.
Americans love their pets and there’s one pet food company I like right now. But if you are looking for a stock to short, I’ve identified one that is breaking down.
In today’s video, I’ll go over how Friday’s employment numbers are distorting the stock market… whether bonds are going to rise or fall in the next quarter… if momentum levels in the Nasdaq are rising or falling which major index is congesting… which major index is set to drop… the top entertainment REIT on my radar… and the weakest pullback opportunity for a bearish trade.
P.S. There’s been a flood of new data lately… And most of it has been positive!
But momentum levels are around historical highs and inflationary risk is present. This situation has created a choppy environment.
So what’s the best way to trade this market?
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