Today, I’m turning the tables. Instead of focusing on the strongest stocks and sectors, let’s talk about four stocks you should avoid, sell or even short.
4 Stocks You Should Avoid or Sell Right Now
Head Trader Roger Scott
If you take a look at Thursday’s jobless claims report, you’ll see that 885,000 Americans filed for unemployment benefits. That’s an increase of 23,000 from the previous week.
When you add that to the fact that 80% of the population (I’m talking about most healthy adults who make up the majority of today’s workforce) will not get the approved Pfizer Inc. (NYSE: PFE) COVID-19 vaccine until next year, things aren’t looking good. And the virus isn’t going to wait around for us.
(Side note: My doctor already told me that I shouldn’t expect to receive my COVID-19 vaccine until March or even April of 2021.)
That means the market could be on the verge of another sell-off. Not a long-term sell-off, but something similar to what we saw in late February, March or April of this year.
If the market drops, the weakest stocks will go down the most.
That’s why I want to show you four stocks that are already making 90-day breakdowns, meaning they’re trading at their lowest levels in 90 days, and could trade even lower if the market does in fact drop.
These are, simply put, four stocks you should avoid.
We might not see a big downside correction. It may be something small; however, I do believe the market is stretched out and needs to snap back before going up based on the numbers I’m seeing.
So, no. I’m not saying the market is going to turn bearish or that you should be concerned. I’m just giving you four stocks you should avoid if the market experiences a little correction.