Only 44% of stocks priced above $2 are currently trading above their 50-day moving averages…
With global tensions like Afghanistan and rising COVID-19 infections, the Federal Reserve probably won’t take action or taper bond purchases until the end of this year.
If that’s the actual case, traders and investors should expect major profit opportunities from stocks that are sharply outperforming the market…
That’s why I’ve decided to give away a few stocks to add to your watchlist for fall 2021.
All you need to remember is that low interest rates and higher bonds is the perfect recipe for a bullish run in stocks — which is the main reason why stocks are near all-time highs at the moment.
2 Stocks to Add to Your Watchlist for Fall 2021
The first stock to add to your watchlist for fall 2021 is Monolithic Power Systems Inc. (Nasdaq: MPWR).
It’s a global company that provides high-performance, semiconductor-based power electronics like power circuits for cloud computing, telecom infrastructures, automotive, industrial and consumer systems.
MPWR’s mission is to reduce energy and material consumption to improve all aspects of quality of life.
It’s the 11th-strongest S&P 500 stock on my proprietary Cumulative Strength Index (CSI) scan, and the fifth-fastest-gaining stock on a monthly basis, so it’s definitely moving up in rank.
If you’re familiar with my CSI scan, then you know once a stock moves up in rank, it tends to stay there and continue trading higher for several months.
MPWR’s one-year return is about 84%, so it’s easy to understand why I have a price target of $520 per share over the next 12 weeks. That’s extremely possible — especially if the Fed fails to take action to slow down its bond-buying.
The second stock I’d add to your watchlist for fall 2021 is actually the 22nd-strongest stock out of the entire S&P 500 on a cumulative basis for my proprietary SCI scan, and the eighth-strongest stock on a monthly basis.
So it’s gaining strength and could end up being the top stock on my scan for months — much like Moderna, Albemarle and Nucor, which made higher highs and outperformed the broader market for months at a time.
Check out my short video below to see which stocks to add to your watchlist for fall 2021.
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