The Energy, Financials and Materials sectors charge ahead as Tech and Consumer Discretionary fall. I’ve identified four pullback stocks in the hottest sectors that should look to continue their upward trend — and more in today’s stock market recap.

The Nasdaq is still in uncertain territory while the S&P 500 looks to bounce off its 50-day moving average.

But first…

Stock Market Recap

Global markets are mixed today as Wall Street opened lower due to uncertain economic data and COVID-19 concerns.

FAANG stocks, industrial stocks, retails and banks led the charge on Friday as markets bounced back from a three-day losing streak.

The Nasdaq continues to trade below its 50-day moving average. I would steer clear from entering a big position in large-cap Tech stocks until we see two complete days of clearance above that level.

The S&P 500 has bounced back from its 50-day moving average level, and is currently fragmented. The Technology and Consumer Discretionary sectors have been breaking down the past month. I would stick with Energy, basic Materials and Financials for the time being as they are the strongest right now.

The bond market will continue to trade sideways and interest rates will hover around the 1.5% to 1.8% for the near future. I expect bonds will fall — but not until we have clear direction, likely not until the third or fourth quarter this year.

Roger’s Radar: Top Stocks in the Energy and Basic Materials Sectors

Energy stocks have struggled to break February 2020 highs until recently. Devon Energy Corp. (NYSE: DVN) has been one of my favorite stocks lately. In fact, I recently sent out an alert on the stock to my Alpha Rotation members. 

DVN rose in early May to make a new 2021 high, and it just pulled back last week. It’s now trying to move even higher and continue its upward momentum.

DVN is based in Oklahoma and operates around 3,942 gross wells. Its primary business is in oil, natural gas and natural gas liquids. Energy is a hot sector after being dormant for most of the past year.

I have two more Energy stocks with pullbacks that are riding the sector wave. I’ve also identified a Uranium play with a 106.22% return in the last year.

In today’s video, I’ll go over the top Federal Reserve reports coming out this week… whether the S&P 500 is bullish… whether the Nasdaq is bullish… the top sector and industries to follow… the weakest sectors to fad right now… and top four high-probability pullback stocks I’ve identified.

 

P.S. Last week was turbulent…

We had higher-than-expected consumer and producer prices, and consumer sentiment is at a three-month low. But we also had another positive  jobless claims report and pandemic restrictions are easing.

There are a lot of factors pulling on Wall Street…

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My Top Stocks Ahead of the Fed’s Next Rate Hike

My Top Stocks Ahead of the Fed’s Next Rate Hike

 Before we begin, I want to let you know that this morning's Trading Pub Roundtable with Don Yocham — featuring Tactical Wealth Investor’s Garrett Baldwin, Austrian trading expert Achim Mautz and yours truly, Senior Strategist Roger Scott — will be held at our new...

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