Market fundamentals and valuations have seemingly been thrown out the window (at least in the short-term). I don’t think this market euphoria can last much longer. Many retail investors have been temporarily scared out of stocks by the much-expected capitulation of GameStop (GME Quick QuoteGME - Free Report) , AMC (AMC Quick QuoteAMC - Free Report) , and Bed Bath & Beyond , with many of these new high-risk traders not having the word sell in their lexicon.

We have traded effectively sideways since big tech earnings kicked off two weeks ago. We had tremendous results from the biggest and baddest tech giants, but the markets seemed to have more than priced in earnings beats from market-moving innovative giants like Apple (AAPL Quick QuoteAAPL - Free Report) , Microsoft (MSFT Quick QuoteMSFT - Free Report) , and Amazon (AMZN Quick QuoteAMZN - Free Report) .

Traders were buying the rumors of good earnings expectations, and when these great earnings came to fruition, they sold the news. The markets are looking toppy from every angle. It appears that all of the optimism is already baked in. I expect to see a 10-15% pullback in the coming weeks/months.

Like the famous John Maynard Keynes said, “the markets can remain irrational longer than you can remain solvent.” Don’t try to time the correction, but be cautious with your market purchases.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

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