Still Not (Yet) Letting Things Run
May 3, 2021
To us, the major (and most disappointing) theme of the past few weeks has been the selling in stocks as they approach their old highs; while selling pressures are controlled, buyers aren’t exactly stepping up in a major way. Of course, the real question is whether earnings seasons causes the bulls to flex their muscles; so far, that hasn’t happened, but we’ll see how it goes. We continue to think keeping some cash on the sideline and aiming to enter mostly on pullbacks remains the best play.
This week’s list has a hodgepodge of names, many of which have reacted well to earnings, so if you’re going to buy strength, these are some top candidates. Our Top Pick is one of those, gapping up with great power last week.