This market will not go down. At least investors should not expect it to until it proves otherwise. What would that take? A solid-to-large down day to start, then a second solid follow-through down day. Back-to-back down days have been elusive. If you recall, over two weeks ago we had a massive drop in the markets. It was Wednesday, May 17. However, there was no follow-through the next day. Instead, markets floated up, up and away, reaching new all-time highs. The secondary down day is extremely important to confirming a change in direction.
Without this reversal signal, I'm buying every beaten-down stock I can find. Investors are searching for these names and will pile in on the first sign of a pop.
My Favorite Picks
All three of these stocks reported great earnings and initially jumped, but then slowly pulled back to their lows. The next leg up should be on the horizon.