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The Dow Jones Industrial Average was down nearly 800 points in early market trading this morning.
But stocks staged a midday comeback, climbing back to positive territory by the early afternoon.
The biggest news of the day came from the U.S. Federal Reserve. The central bank announced it will begin purchasing individual corporate bonds, in addition to the ETFs it's already purchasing.
That fueled the Dow's rally even further as the index closed 157 points higher by the end of the trading session.
Here's what our experts – Chris Johnson and Tom Gentile – saw throughout the volatile trading session.
- Chris is watching the iShares Russell 2000 Index ETF (NYSEARCA: IWM) today, which has seen 30 trading days where it lost 5% or more in a single day (less than 1% of the time).
- Last Thursday's (June 11) -7.4% move was one of them.
- Historically, the IWM rallies an average of 4.3% the following day, 63% of the time… but it was only up 1% last Friday.
- That means that more downside pain is likely for small-cap stocks the rest of this week.
- So, now is the time to apply your hedges and initiate trailing stop-loss trades if you haven't already.
- Here are three stocks Chris is researching today:
- Shopify Inc. (NASDAQ: SHOP) was upgraded to overweight from neutral at Piper Sandler, who raised its price target to $843 per share. The stock got a 7% pop.
- iRobot Corp. (NASDAQ: IRBT) jumped 10% on news that the company anticipates Q2 revenue between $260 and $270 million, up from prior analyst expectations of $182 million.
- And Carnival Corp. (NYSE: CCL) is scheduled to announce earnings on Wednesday. Don't take a position, just study what happens.
- Tomorrow at 11 a.m.: Chris is going live AGAIN at 11 a.m. tomorrow… but not publicly.
- Tom showed his viewers how to short the SPDR S&P 500 ETF Trust (NYSEARCA: SPY) with put spreads if and when the time presents itself.
- He doesn't want to put the trade on in the middle of the market reversal to the upside, so keep this one in your back pocket.
- Instead, look for a pullback starting around the $310 on SPY.
- Tom thinks oil is staging a comeback and is bullish on the commodity as people are traveling a bit more during the summer, despite the pandemic.
- He's specifically bullish on Exxon Mobil Corp. (NYSE: XOM), which is showing technical signs of breaking out to the upside.
- Tom's price target on XOM is $55 per share.
- Tom is bullish on gold and Bitcoin long-term.
- As the federal government continues to print more dollars in an attempt to solve its many problems, that will continue to increase the values of scarce assets like gold and Bitcoin – which are limited in supply can't be created out of thin air.
Markets Live Is Expanding
Starting this week, we have a new Markets Live schedule, including one new expert – Andrew Keene.
Andrew is a globally known investor and a renowned options trader who turned a couple thousand dollars into $5 million in less than two years.
He will be providing his viewers opportunities to lock in massive profits every Wednesday at 12 p.m. EDT.
Here's the full Markets Live schedule below:
So catch us tomorrow – starting LIVE again at 8:45 a.m. EDT with D.R. Barton, Jr., right here.
If you missed our live streams today, you can now replay them on our YouTube channel, here.
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