ESTC - The Best Stocks To Buy On A Sell-Off
Investors are shifting attention to industrial goods and selectively, basic materials baskets, but our overbought indicator continues to flash warning signals, suggesting stocks are overheated and due for a breather.
If the market retreats, then proper positioning will be key, particularly in high-flying industries, such as software. To protect against losses, it could be a good time to:
- Avoid margin,
- Sell second-tier stocks into strength, and
- Limit exposure to short-term call options.
I expect fiscal and monetary support will continue propping markets up in the medium term, but short-term headwinds may strengthen if Congress