It’s Monday, and we’re still in the middle of earnings season.
But this year, investors are being blindsided with lots of twists and surprises.
Which is why today, I’m going to talk about how to trade the market this week.
Year-over-year earnings growth was expected to be 26% this quarter – a strong number in any environment, not to mention a year-long pandemic.
However, there’s a big catch this time around: valuations.
Companies with high valuations are getting punched down after their earnings reports, even when they’ve posted strong results. We talk about “sell-the-news” situations a lot here, and this quarter has turned into the textbook example.
Of course, there are a few exceptions – in fact, my bullish trade list for today has a few of them -but in general, the market has become intolerant of high valuations, especially in the technology sector.
Following this morning’s news, I’ve identified the three stocks that you can use to position yourself for profits this week…
This past Monday, I introduced our new game plan of building a summer portfolio.
We’re going to be focusing on the sectors that I call the “pandemic darlings” because they will enjoy the bulk of the reopening profits.
Over the next few weeks, I’m going to give you the absolute best stocks from each of the pandemic darlings.
This way, you can build a technically sound summer portfolio that we can “set and forget” for the rest of the year.
Like I mentioned this past Wednesday, we’ll revisit these stocks about once a month, but that’s all the maintenance this best in breed portfolio will require.
I am so excited for the next four weeks.
While everyone else is “staying in May and going away,” we’re going to take advantage of the current market sentiment to create a strong basket of stocks that are already positioned for a bull rally.
The first sector we’ll be looking at is the energy sector.
Here are the five best energy stocks of 2021…