2 Stocks to Watch for Upside Potential
Welcome to today’s Rude Awakening…
A few good pieces of news are pushing markets a bit higher after yesterday’s selloff.
Let’s find out what’s going on.
Markets Trying to Push to the Upside
Trying is the key word here.
Yesterday we had an absolute bloodbath.
All our technical indicators are still in sell mode. And now, volatility is rising.
If you look at the VXX — the volatility indicator — popping to the upside this morning.
When we see the VXX move from a 22 to a 27 level in one week’s time, traders know there is a lot of fear in the marketplace.
We’ll have to keep a close eye on these levels as we go through the trading day.
The S&P, NASDAQ, and the Dow are all trying to push higher as the morning’s continued.
And it’s all due to a couple of economic news items that just came out.
First, we had the US GDP numbers come out for the third quarter today.
And, as Fortune reports…
“The economy just experienced its fastest three months of growth in U.S. history.”
We saw 32% growth in our gross domestic product in Q3…
While that’s great, it just makes up for the 31% contraction we saw in Q2…
Which might be why that Fortune article was titled:
Overall for 2020, GDP is still down 3.5% since the end of last year.
But the Q3 record is giving the markets some life.
The other piece of news is the jobless claims coming out this morning… 22 million people still without work, although the numbers are employing.
It’s a moment of consternation for the markets… our greatest 3-month growth ever, with still-high unemployment.
The markets are seeing a lot of activity, in all of our technical indicators.
So, what sectors can we look at for trade opportunities?
Energy is getting hit hardest right now.
So, let’s take a look at some trading ideas based on sector activity…
2 Opportunities in All the Market Confusion
The Boeing Company (BA) is looking like it’s finding a bottom here, down around the $145 level.
We are not yet seeing buy signals in our technical indicators, but this is definitely a stock to keep on your potential buys watchlist.
The other opportunity is in United States Oil Fund, LP (USO), a fund that’s getting utterly crushed right now.
Again, no buy signals yet, but as it’s looking to form a new bottom, this is another for your watchlist.
These are some companies worth watching, for upside potential!
Have a safe trading day folks.
We’ll talk tomorrow.
Editor, Rude Awakening