A Perfect Storm Is Brewing for a Cooldown. Trade These Pullback Stocks
The stock market is brewing up the perfect storm for a cooldown, so it’s getting harder to spot good opportunities. But Energy and Health Care sector stocks continue to look strong despite all the noise. I’ve identified three low-risk pullbacks in these sectors with promising short-term potential.
The put/call ratio measures the market’s overall sentiment. Call options are bullish while put options are bearish. The ratio shows overbought levels at 0.680. Every time stocks drop below 0.70, the market tends to reverse. So while the S&P 500 is making all-time highs, momentum levels are decreasing and there’s divergence... which simply means the price of a stock(s) is moving in the opposite direction of a technical indicator.
President Joe Biden announced a bipartisan infrastructure spending bill on Thursday, helping lift stocks. The plan is set to benefit the construction industry and will cost about $973 billion over five years. Led by surging demand for civilian aircraft, U.S. factory orders rose in May for the 12th time in the past 13 months. And durable goods orders, released on Thursday, rose 2.3%.
In today’s video, you’ll discover whether bonds will continue to rise or move back into their trading range… if the Nasdaq 100 will continue to rise or pullback… what the put/call ratio is telling us about the broader market… and the top sector and stocks to buy right now.
