A list of stocks I'm looking to add to, and at what levels, if we see a meaningful correction.
My Focus List
I have been calling for a meaningful pullback for a little while now, and while many on Twitter were panicking today, I don’t think this qualifies at all. At 6411, the S&P is still within 1% of its all-time high!
However, the market does need a reset. A pullback to fill the gap from late June (6030 on the S&P 500) wouldn’t be a surprise over next few weeks, especially since we are heading into a seasonally weak period while being overbought and at extreme valuations. Or conversely, the market may remain resilient and keep marching on.
However, it is a good idea to build a narrow list of 5-8 stocks you would like to add to focus on in a downturn. I am currently at >14% cash built recently from selling into extreme overbought conditions and tactfully removing some positions from the portfolio.
Below is a list of stocks I'm looking to add to, and at what levels, if we see a meaningful correction: