Stocks began the week with a pullback, but this morning’s pro trader isn’t turning bearish.
Price Headley, founder of Big Trends, said the Dow Jones Industrial Average has been “tearing the cover off of the ball.” But he does see risk for bonds as economists increasingly bet on Federal Reserve officials hiking interest rates at their meeting next month. That could bode ill for the iShares 20+ Year Treasury Bond ETF (TLT), according to Headley. After all, “trading is having a game plan.” SPDR Gold Shares (GLD) is another potential mover.
Speaking of plans, the aspirations of bigwigs Jeff Bezos, Jamie Dimon and Warren Buffett to disrupt healthcare are weighing on the sector. Tune into the video for more of his thoughts on that.
Headley also said traders shouldn’t bail on Alibaba (BABA) following a weak earnings report. “It would be a mistake to sell right now since BABA is a market leader.” Headley was also avoiding Apple (AAPL) at $165 and did a breakdown of the price action in the iPath S&P 500 VIX ST Futures ETN (VXX).