If the market drops, weak stocks are usually the first to fall with it. The QQQ, which tracks the Nasdaq, has breached its 50-day moving average, breaking its short-term bullish run. I've identified three weak stocks positioned to suffer from a pullback in the broader market.
Wall Street opened lower today, but this isn't necessarily a strong indicator of overall market sentiment. It could be institutional traders getting a late start in a holiday-shortened week. People should take today's open into consideration and be cautious — but don't put too much weight on the market shift yet.
Today's jobless claims report showed a new pandemic low. While this is good news, traders are cautiously optimistic after last month's employment data. If Friday's report shows that jobs were created in line with the drop in jobless claims, one of Wall Street's fears will be dampened.
The S&P 500 continues to be overstretched and the Russell 2000 continues to be choppy. Basic Materials, Energy and airline stocks are the strongest in the market right now.
In today's video, I'll go over why the market is so volatile today… why Federal Reserve data is slightly counterintuitive… how to determine if the QQQ is prime for buying or selling… and three stocks to sell right now.
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