I’ve identified four low-risk, short-term opportunities. These plays are in the medical and chip industries, and are ideally set up for the current market environment — and more in today’s stock market recap.
We’re in uncertain times as momentum continues to move toward dangerous levels. Low exposure and short-term trades are key to navigating the current market.
Stock Market Recap
In today’s stock market recap, global markets are mixed this morning as Japan and China reach the end of their holiday season. U.S. markets are higher this morning after large tech stocks led Tuesday’s decline.
Important data this week includes jobless claims on Thursday and the employment situation report on Friday. I see jobless claims coming in below 600,000, and the unemployment rate at 5.9% for April.
Treasury Secretary Janet Yellen corrected a comment she made Tuesday that the Federal Reserve might have to raise interest rates to avoid overheating the economy. Yellen now has confidence in the economy and said she doesn’t expect inflation to be a problem.
Roger’s Radar: 4 Pullbacks In 2 Industries
Inmode Ltd. (Nasdaq: INMD) is an Israeili company that provides medical tech. It’s one-year return is 245% and it’s pulled back to its 50-day moving average after making an all-time high. I like stocks that pullback from all-time highs because they tend to bounce back.
COVID-19 has presented many challenges, but there’s strong demand for medical services. Divorce rates, drug use and weight gain have gone through the roof. And our second medical stock, which focuses on outpatient services, is showing a strong upward trend.
One of the chip stocks has a one-year return of 98%, and it’s pulling back to its 50-day moving average. The second chip stock supplies Apple with semiconductors for the iPad. It has strong fundamentals and is back down at its 50-day moving average.
In today’s video, I’ll explain whether the bond market will break lower… how the Nasdaq is doing compared to the overall market… whether momentum levels are catching up with us… two industries showing pullbacks in price action… and four high-probability opportunity stocks.
P.S. In the world of trading, most only like to talk about the good times…
“The easy times” when traders and investors get in a stock after a massive sell-off and just about everything is a bargain.
But things have changed over the past 12 months…
The stock market has been breaking new highs, over and over again. And when this happens, trading tends to turn tough.
That’s why I’m revealing the three profit rules I use to navigate the markets in uncertain times like these…