Investors are in a bumpy, oversold market right now where momentum levels are in the 20th percentile…
And the problem is that while the market is oversold, we’re still overbought in some of the high-flying stocks. So we should start to see a tug of war begin between the high-fliers coming back down to earth — with the prospect of less easy money coming in — or the oversold value stocks bouncing.
Joy of the Trade’s Jeff Zananiri sees the latter coming to fruition... In fact, Jeff expects the big market rally in 2022 to be in the Russell 2000 and value names. He projects value stocks will outperform growth stocks by double digits.
But until we start to see stock moves pointing in that direction, these are the stock market sectors we’re both watching going into the year-end and 2022.
Tech stocks continued to slide Friday, bringing down both the S&P 500 and Dow.
The Nasdaq is down nearly 2.5% just days after the Federal Reserve decided to accelerate tapering its bond-buying, which caused all of the major indices to initially jump higher.
The S&P 500 and Dow fell roughly 1% on Thursday, as a number of tech stocks are part of those indices, as well.
We continue to see the sector rotation I’ve been talking about these past few weeks, with money moving out of more speculative tech stocks and into Consumer Staples and Utilities, which are driving the market along with Health Care.
In this stock market recap video, you’ll learn what to expect from small caps… the most likely scenario for bonds… the three biggest factors driving equities right now… the three sectors making 90-day breakouts… why market internals are bottoming out… the best way to approach the current market cycle… which sectors to avoid due to high volatility and unpredictability… and we’ll even review two winning trades we took this week.
I do a ton of sector analysis and use back-tested, proven strategies to beat the market. I use proprietary formulas based on relative strength to track the top 5 strongest stocks… You know, the ones I send you in my new weekly watchlist. But now I want to know which stocks you’d like to see rankings for! All you have to do is reply directly to this email with your tickers!
And from what I’ve been hearing, it’s led to trade losses and missed opportunities. Heck, recent volatility has pushed some people to give up on trading completely...
Nothing pains me more than to hear that!
So I put together a complimentary bootcamp training session to teach people the three critical components for “profitable pullback” trading!
These 2 Small-Cap Stocks Are the Best Bet for Profits in 2022
December 16, 2021
Most traders naturally flock toward large, well-known stocks — that makes sense because most are popular companies we’ve loved or heard about our entire lives.
The information in this email is intended for informational purposes only and does not guarantee specific results as there is a high degree of risk involved with trading. Also, our traders are real traders and may have financial interests in the companies discussed. Please see our Terms and Conditions for more information.
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