3 Pullback Tech Stocks to Target Now
Two basic Materials and one Energy sector names are on my radar today. Stocks recently haven’t been as flashy as last summer’s. In fact, I’ve been calling them “boring” stocks. While these businesses may not be exciting, the technical performance and upside potential for these names are — and more in today’s stock market recap.
But first…
Stock Market Recap
Global markets are mixed this morning as Wall Street rebounds from a three-day losing streak after strong employment data.
The Philadelphia Federal Reserve Manufacturing Index missed forecasts, but jobless claims made a new pandemic low. The Producer Manufacturing Index (PMI) and existing home sales are out this morning.
The S&P 500 is trading above its 50-day moving average for the second day in a row, so I’m now bullish on the index. The Nasdaq is trading above its 50-day MA for the first time today. Remember, I like to see stocks trading two consecutive days above the 50-day MA before I give a bullish bias.
Traders are cautiously optimistic with the positive employment data. They are worried about inflation because of rising commodity prices. Wall Street fears the Fed will pull back on stimulus efforts if inflation runs too hot.
Japan showed a decrease in manufacturing and services sentiment in a preliminary survey. States of emergency continue in several areas of the country. More cities and regions are expected to join the list soon. The Olympics are still scheduled to continue amid this crisis.
Roger’s Radar: Basic Materials and Energy Stocks
Summit Materials Inc. (NYSE: SUM) provides construction materials for public infrastructure, private and business clients. I’ve been hammering the potential of infrastructure for some time now. SUM is positioned to benefit from President Joe Biden’s infrastructure plan and economic expansion.
SUM is in the Russell 2000 with a market cap of only $3.6 billion. Its one-year return is 131.11%. The stock is on a smooth upward trend. When the market recently broke its 50-day MA, SUM traded lower but kept well above its own 50-day MA.
I’ve also identified a smaller energy company with a one-year return of 142.06%. I like the pullback we’re seeing in Energy and I think we’re going to see more upside in that sector. The third play I have for you today is a metals and mining company also in the Materials sector. It’s also on a strong upward trend and has pulled back the past two weeks.
In today’s video, I’ll go over whether the broader market remains bullish or bearish… whether tech is making a comeback… which sectors you need to avoid right now… and three stocks with strong upward trends after recent pullbacks.
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