Everybody knows the stock market’s been choppy of late…
If you’ve paid any attention to me lately, then you know momentum levels are cooling off, which is normal for this time of the year. With the Federal Reserve pouring billions into the market each month, I don’t see us headed into bearish territory.
Current selling pressure is typical…
Most likely, it’ll probably even lead us to another major rally, but that’s a topic for another video.
So when I typically spot pullbacks, I don’t turn to the weakest names to get the best price level. I look at the strongest stocks pulling back because they’ll be the first ones to rally when investors start to come back to the market.
Let’s get into a few of the strongest stocks pulling back now….
The 2 Strongest Stocks Pulling Back This Fall
Before we jump into today’s picks, we need to keep in mind that momentum levels are already below the 50th percentile, and that markets have been weakening for quite some time.
We’re just seeing the second shoe drop… Or as I like to say, shaking out all of the weak hands before stability returns.
So it’s no wonder why one of the strongest stocks pulling back is Zscaler Inc. (Nasdaq: ZS).
ZS is a cloud-based security company that works on transforming networks and applications for mobile and the cloud. In case you didn’t already know, “the cloud” is where all of the money is right now.
Even research company Gartner Inc. (NYSE: IT), another name I like, recognized ZS as a dominant force in the industry for 10 years in a row!
So I have a price target of $300 over the next 10 weeks…
Check out my short video on the strongest stocks pulling back to learn more about ZS and the next stock on my list.
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