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Make Or Break Moment: Best Stocks Now


  • Stock market headwinds emerging at resistance.
  • Stock picking is key given uncertainty.
  • Here are the top stocks to buy now.
  • Looking for more stock ideas like this one? Get them exclusively at Top Stocks For Tomorrow. Get started today »

Substantial fiscal and monetary intervention has fueled a dramatic run-up in shares; however, the market is approaching resistance, suggesting a make-or-break moment for the recent rally is approaching.

Specifically, the S&P 500 is almost back to its 200-day moving average (DMA), raising concern sellers may hit the sell button ahead of a potential roll-over and retest. Anticipating headwinds, domestic equity funds saw net outflows of $3.2 billion in the week ending April 29, according to Refinitiv Lipper.

Alternatively, if the market digests this selling and recovers its 200 DMA, it could force those who are betting against stocks because of worsening economic data to cover short positions or deploy cash.

The potential for either a reversal or acceleration makes the current market direction murky. Adding uncertainty, legendary investor Warren Buffett acknowledged during his annual report this weekend that he didn't find bargains worth betting big on in March. He even tapped the brakes on repurchasing Berkshire Hathaway's (BRK.A) (BRK.B) own shares because he appears to have determined a deteriorating book value meant shares weren't as cheap as it appeared following a tumble in its share price.

Buffett's hesitation to commit cash shouldn't be viewed too negatively, though. His inability to cut deals may have been caused more by rapid, massive fiscal and monetary intervention. Companies simply didn't need to pay up to get financing from Buffett given the government's support of the credit markets.

The top sectors to buy now

With uncertainty creeping into the tape, fishing for stocks in the right pond could be increasingly important. I'm sharing our large-cap, mid-cap, and small-cap sector ranking in a minute, but first, here's how we compile our ratings.

Every week, we aggregate individual scores on over 1,500 widely-traded stocks by market cap to highlight sector and industry strength. This system is explained more

Never miss a money-making idea. Weekly large cap, mid cap, small cap and ADR rankings. Know what sectors, industries, and stocks to buy and when to buy them. Over 400 bps of excess return in the following 52 weeks since 2017. Free trial, special introductory pricing, and you can cancel anytime. Join the conversation. Sign up for Top Stocks For Tomorrow.

This article was written by

Limelight Alpha provides weekly sector, industry, and stock idea generation to day traders, swing traders, and buy and hold minded investors. Our research spans over 1,600 stocks and our quantitative scoring model has been used by professional investors for nearly 20 years. 

Analyst’s Disclosure: I am/we are long SAM, PYPL, DXCM, BMY, EA, NFLX, AMZN, CVNA, ADBE, MDB, NOW, SMAR. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (2)

cssys profile picture
cvna insiders have been selling BIG #s of shares for years. cvna moved up from$ 22 last month to over 70. this call looks a little late...
Limelight Alpha Management Partners profile picture
It's undeniably one of the most volatile/risky stocks out there (my cost basis is $24.80). The big debate will be if shorts are right that liquidity will expire before critical mass or longs are right that its early innings for a newly disruptive shopping experience. As for the share sales, I think officers participation in the April offering provided confidence. seekingalpha.com/...
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