We are at the stage in this selloff now where the selling is more correlated and is taking place without regard to individual merit. Good stocks are being sold along with the bad and there is no effort to try to sort them out.
This "liquidation" phase of a correction can last for a while but eventually, it creates great opportunities as more astute traders sort through the wreckage and start buying the stocks that have been most unfairly punished. It isn't always easy to time but the recoveries can occur quickly when overall market conditions improve.
The key right now is to have your shopping list ready.
One group that I favor is biotechnology. The biotechnology index ( (XBI) ETF) hit a high on July 21 and has been under pressure for a while. The selling has accelerated for two days now and I believe a number of names in that group are washed out sufficiently that they can be built back up.
Some of the biotechs on my shopping list include Ocular Therapeutix (OCUL) , Xeris Pharmaceuticals (XERS) , Horizon Therapeutics (HZNP) , Personalis (PSNL) , Aurinia Pharmaceuticals (AUPH) and Trillium Therapeutics (TRIL) .
In the cannabis sector, I'm adding some Trulieve Cannabi (TCNNF) and have my eye on a number of others including Green Thumb Industries (GTBIF) , Curaleaf Holdings (CURLF) , and Cresco Labs (CRLBF) .
In the EV sector. I've added some Envision Solar International (EVSI) and am looking to remount Graf Industrial (GRAF) and Tortoise Acquisition (SHLL) .
The key to accumulating stocks in this environment is to move incrementally. Don't be in a rush and leave plenty of room to build positions as they develop.
My shopping list is always a work in progress will change quickly of the course of the day but this is a good start.
