The put/call ratio is a good sentiment indicator that tells us whether traders are bullish or bearish. Right now, the ratio is stretched out to the put side. This indicates more potential upside in the stock market. I've identified four great pullback stocks to trade this sentiment.
Jobless claims hit a new pandemic low this week, but the Philadelphia Federal Reserve Manufacturing Index missed the consensus by a wide margin.
I expect interest rates will start climbing toward the end of the summer. Until then, the stock market will continue being choppy and without strong directional bias.
I've ranked the stock indexes from strongest to weakest on relative strength. In today's video, I'll go over which index is recovering and which one is breaking down… the value of using the put/call ratio… the biggest Fed reports of the week and what they mean for the economy… and four pullback opportunities in major sectors.
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