What Do We Do Now?

September 21, 2023

The US Stock Market is mostly one big fat mess, as is perfectly normal for this time of the year.

So no surprise there.

You can catch up on our reasoning in this short post.

But the bottom line is that we're now well into month #3 of this correction, since the new 52-week highs list peaked back in July.

The fact that markets are a mess is not a big deal. The bigger question is more about how long it will take to resolve, and which stocks are holding up the best during this seasonally weak period.

We discussed some really interesting setups during our LIVE Conference Call this week.

But today I want to focus on a space that is acting way better than the rest of its peers: Cyber Security.

While Tech stocks have generally been struggling since mid-summer, take a look at Palo Alto hanging in there just fine:

Palo Alto is actually up during this market correction.

What does that say about the demand for PANW?

What does that suggest for Cyber Security in general?

Take a look at Check Point, a stock that has made little progress in over 20 years, if you zoom out. But off the post-Tech bubble lows, it's been a steady uptrend. And it's just now starting to get going:

Check Point is up almost 9% since the new highs list peaked in July, and the majority of stocks have corrected.

One thing about market corrections is that it drives investors nuts. You can see the crazy oozing out of people on the twitter.

And you see it in the headlines too.

But in my experience, it's way better to just focus on how normal this is around this time of the year. And more importantly, pay attention to which stocks are bucking the trend.

All of our trade ideas are listed here with entry points and price targets.

Our Rangefinder app is an even better resource. Reach out if you haven't set up your Rangefinder in your account.

But remember, it's not just about looking for relative strength. There are a lot of stocks that look terrible too.

Here's our list of the worst stocks on the planet: