The Top 5 Stocks To Buy Before 2020 Ends!

Why I'm Cautiously Bullish About The Market Right Now... [View Online](=)|[Unsubscribe]( [Street Authority Daily] -[]Recommended Link Sponsored Content [The Top 5 Stocks To Buy Before 2020 Ends!]( Could these 5 stocks be 2021's biggest winners? Stock investors are invited to join stock market expert Marc Chaikin (the creator of Chaikin Money Flow) on Tuesday, December 22nd for a free webinar where he'll reveal his top 5 favorite stocks right now! Plus, you'll discover his timing strategies, how to recognize a stock's "personality change," and much more. [Click here to register now.]( December 16, 2020 Why I'm Cautiously Bullish About The Market Right Now... By Amber Hestla [Amber Hestla] Major market averages pulled back last week. Pullbacks are normal even in strong uptrends, so there is no reason for alarm - yet. I'll cover the "yet" shortly, but first let's look at the pullback in context. -[]Recommended Link [Odd trade turns every Thursday into a $2,950 payday?]( This unique strategy lets you collect a "Paycheck" every Thursday… like clockwork. [Discover how we're turning every Thursday into a potential $2,950 payday.]( Jim Fink has used this exact system for over eight years to close out 94% of his trades for a gain. And the trade he's releasing on Thursday could be an even BIGGER opportunity. But if you want access to it… [you need to click here NOW to add your name to the payout list.]( The S&P 500, as represented by the SPDR S&P 500 ETF (NYSE: SPY), pulled back to a sustainable trendline. The chart below shows this. The initial rally off the October low was steep. In general, steep rallies are unsustainable because the underlying fundamentals don't change that rapidly. That's true even in these unusual times. On November 9, news of a COVID vaccine sent stocks higher. That day is highlighted with the blue rectangle. In the next few days, we saw an initial attempt to surpass that high, which failed. This established the slope of the initial trendline shown above. The next three trendlines shown above are predefined based on the slope of the first line. They are related to each other with Fibonacci ratios. [Read more: [No One Knows Why This Ratio Works, But It Does...](] As I've noted before, Fibonacci ratios are useful in market analysis solely because they are widely followed. Traders at many large funds are aware of them because other traders are aware, and that explains why Fibonacci ratios should be considered in analysis. Last week's pullback brings us to the sustainable trendline. Other Bullish Signs Gains are possible based on the fundamentals. A vaccine could change the economic data quickly as it holds the promise of getting people back to work and unleashing pent-up demand. Other indexes are also at important levels. Invesco QQQ Trust (NASDAQ: QQQ), an ETF that tracks the NASDAQ 100 index, also pulled back, ending the week at support that coincides with the upper edge of the recent trading range. I've highlighted this range with a blue rectangle in the next chart. The uptrend would remain intact even with a relatively deep pullback. Support and a 38.2% [retracement]( of the trading range coincide at $284.80. That's about 6% below Friday's close. However, a test of that level is unlikely as long as momentum remains bullish. [Last week](, I showed the recent bullish crossover of the Profit Amplifier Momentum (PAM) indicator at the bottom of the chart. PAM is specifically designed to change from bearish to bullish slowly. This reduces whipsaw signals, which are quickly reversed. Instead it focuses on the longer-term trend. This means it is unlikely to turn exactly at a top or bottom, but it's likely to be on the right side of significant trends. Based on the pattern, the price target for QQQ remains at about $333, about 10% above Friday's close. Closing Thoughts The technicals remain bullish and the potential rewards continue to outweigh the potential risks on a technical basis. Yet, the risks on a fundamental basis remain high. There are risks associated with the complex logistics of vaccine distribution that are being addressed. But there are also new shutdown orders being implemented as the virus spreads ahead of the vaccine. This could slow the economic recovery, and that is a risk we cannot ignore. While the weight of the evidence remains bullish in the stock market, the risks remain relatively high. Vigilance needs to be part of every investor's strategy right now. P.S. Over at Profitable Trading, our publisher just authorized something that will VASTLY improve your investing results far more… and far longer… than any single subscription you have with us right now. 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