Last week, I went over how you can profit throughout the upcoming market slowdown.
Many of your fellow readers have asked me about one particular stock, Sally Beauty Holdings, Inc. (NYSE: SBH).
Let me say it right now – do not touch this stock.
Although we’ve made a lot of money playing SBH, right now all my charts are showing me that it’s headed for the dumps.
Remember, the trend is your friend, and as traders we must follow the trend.
SBH is the perfect example of a stock you must be weary of.
After we collected our profit, its 50-day moving average (MA) began falling lower.
The immense volatility surrounding this stock combined with the 50-day MA dropping is a big, fat warning sign that you must avoid this stock at all costs.
If you’re looking for a stock that will keep your portfolio in the green while the rest of the market begins slowing down, I’ve got five stocks that you should add to your portfolio right now.
Not only are these five stocks riding a strong, upwards trend… they also have high short interest… meaning we can take advantage of this one-two combo for quick, predictable gains.
Buy these five stocks to make big profits over the next few weeks…
CJ’s Stock of the Summer #1:
Brookfield Asset Management Inc. (NYSE: BAM)
I have been mentioning the real estate investment trust (REIT) play for a long time now.
There’s a good reason why.
As the entire world opens back up, all those empty buildings will once again be filled with customers and patrons.
It’s only a matter of time before all the buildings in the world are operating at pre-pandemic levels, making REITs one of the most predictable profit plays of the entire post-pandemic recovery.
And out of all the REIT stocks available right now, none are showing as many bullish signals as BAM.
Not only is it a REIT, this company also has exposure to renewable energy investments and immense upside volatility.
Its 50-day MA is also trending upwards and volume shows that investors are trading with interest.
I am extremely bullish on this stock.
CJ’s Stock of the Summer #2:
The Carlyle Group Inc. (NASDAQ: CG)
Although CG is tip-toeing overbought territory, that’s okay because both the 20-day and 50-day moving average is moving up.
Whenever this happens, slightly overbought stocks usually rally higher.
Not to mention, CG is enjoying very solid trading volume, which is yet another sign that this stock is about to pop off into a steep bull rally.
CG‘s operations is also another layer of bullishness to this play.
The company is a private equity firm that makes money by buying other companies, improving them, and profiting off the better margins.
Right now is an absolutely great time to invest in this sort of company because the market is topping out.
Their ability to increase profits when profits are scarce makes this one of the best stocks you can buy right now.
CJ’s Stock of the Summer #3:
Host Hotels & Resorts, Inc. (NASDAQ: HST)
HST is one of the final “get out there” trades we can make.
The stock has been moving sideways but has constantly been trading above its 50-day moving average.
Right now, a silver cross is forming which is causing me to grow extremely bullish.
A “silver cross” is when a stock’s 20-day MA cross above its 50-day MA.
It’s a very bullish indicator.
As we approach the 4th of July, people will be out enjoying the holiday and this company will begin its summertime season of profits.
CJ’s Stock of the Summer #4:
The Kroger Co. (NYSE: KR)
KR is the largest supermarket in America by revenue and is the fourth largest American-owned private employer in the USA.
It’s one of the safest companies investors can invest in.
But right now we have a prime opportunity to make unusual profits from this name.
You see, KR is one of the few companies that can pass on inflation to their customers.
So their profits and revenues can be virtually unaffected by whatever shenanigans the Fed pulls out of their holes.
Last Thursday, they announced their Q1 earnings reports and the stock immediately began breaking out towards new all-time highs.
There’s reasonable trading volume that shows this name is not oversold.
And with a slow and steady increase in profits, this is one of the stocks you’ll want to have in your 2021 summer portfolio.
CJ’s Stock of the Summer #5:
SailPoint Technologies Holdings, Inc. (NYSE: SAIL)
This data management company offers both tech services as well as security services.
I like to think of this play as a “getting into a new trend” trade.
The service they provide will be in constant use throughout the rest of the year and there’s a silver cross forming.
This stock has been experiencing a downtrend for the past few weeks.
Which means we have a short window of opportunity to get into this name before it starts popping higher.
It’s a sort of “turnaround play” where we’re taking advantage of its previous negative movement to position ourselves for a breakout higher.
Tech, in fact, is one of the most profitable industries in today’s world.
Until next time,
— CJ
Source: Straight Up Profits