It’s time to talk about the million-dollar question… Out of the 11 major sectors, which are showing the most strength over the next month, and which are the best to watch short term?
The short-term prognosis for the stock market, in our opinion, is that the retail sector is beginning to show signs of cash flow again.
We’re starting to see some decent return buying in retail names like Macy’s and Kohl’s — which is shocking considering the fact that they just got crushed.
However, as we explained in this week’s “WealthPress Live Roundtable,” it’s important to point out that the fleeting strength we’re seeing in the retail sector is better equipped for a day trader — you won’t want to spend weeks in a retail name at this point in time.
The markets are still digesting remarks made during two Federal Reserve hearings and data from several reports this past week including the latest consumer sentiment and retail sales reports.
Retail sales is always an important report because it makes up about two-thirds of the economy.
And consumer spending makes up about 70% to 75% of the economy. So together, these two reports have the potential to significantly move the markets.
We already have the retail sales number, and it’s not great... Retail sales fell 1.9% in December, more than consensus estimates, as consumers curbed their holiday shopping in the face of higher prices.
To learn more about how these reports could shape trading action into next week, check out this video.
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!
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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