Stocks in the Spolitght Stocks to watch

The markets seem to be continuing their upward trend in this past week was the 2nd week without any indices in correction territory and that's a positive.

It seems earnings reports are coming in quite strong and every time the market tries to sell off another strong earnings report comes out takes right back up. I'm giving credit to the top tax cuts for the stronger earnings and I believe this is going to continue for the rest of the year.

I would use decent sellouts as a reason to pick up more of a favorite or at least climb into the market so you can join the ride along with everyone else.

Also, recessions don't happen in a growing economy such as the one we will be in for the next couple of years, therefore the idea of a recession should go on the back burner. This is especially good for the longer-term investor because now you can handle more of the risk as the markets continue going up and back down and up again. We can expect more of that all the way through this year and probably next.

I'm betting that the OTC stocks will outperform the smaller indices while both continue heading back up again as this is one hard market to keep down.

I believe we are just starting to see major benefits from corporate tax breaks and this should continue throughout the year, assuming Queen Pelosi and her crew are not successful on taking the tax breaks away.

Looking at the chart above we can see that the current discount to the 52-week high is a -8.58%. On 12/3/18 the discount was setting and -8.81% and by 12/24/18 and had fallen down to a -22.46% climbing back to -11.07% on 2/26/19, two months after hitting the bottom, but turned back up again now is trading at -8.57% better than it was before the correction. Remember this is the average of all 30 Dow industrials stock's.

Unfortunately many the good bargains at the bottom of the correction have went into hiding because of the quick rally, but there are still many bargains to choose from. Stocks like Apple, Amazon and Walmart have not recovered from where they were and these are just some examples.

The DOW 30 up 3084.84 (13.22%) on the year and off -416.09 or 1.55% from the 52 week high and is no longer in correction territory for the 12th week.

As for the current market - I would stay with the low PE value stocks. I like stocks like Fonar Corp. (FONR). I like Fonar Corp. because it is a medical product that has an extremely low PE for the current market. I like Apple Inc. simply because it has already backed off a fair amount, holds a low PE and not only is an innovative company but they're setting on gads of cash.

Another stock I like his Walmart (WMT) because it has become much more aggressive and it seems to be attacking Amazon. No matter how big Amazon is, Walmart is in a position to not only catch Amazon, but if they're smart they can overtake it. This is because each and every store is a warehouse making it possible to deliver things to you in just a few hours from the time you order either online or on the phone.

Also, our best bet may be into the lower-priced arena and you certainly need to use caution there, but there are some excellent opportunities if you just do the homework.

Wishing you the best! JR