The latest war in the Middle East continues to intensify as it enters its fourth day, and markets are starting to show concern that the conflict could last longer than initially expected.

After investors stepped in to buy Monday’s very shallow pullback, stocks are once again on the defensive, with the S&P 500 trading at its lowest level since mid-December.

The largest tech stocks - the “Magnificent Seven” - are on the verge of breaking down to their lowest levels in six months.

On the other hand, the Invesco S&P 500 Equal Weight ETF (RSP) remains above its February low, along with the iShares Russell 2000 ETF (IWM), which tracks small- and mid-cap stocks.

Before I go any further, I am not calling for the selling to end today. But I am saying it’s time to start building your watchlist of stocks that are approaching prices that simply cannot be ignored.

Investors naturally gravitate toward the biggest names - the Magnificent Seven and their peers. That’s not necessarily a bad strategy. However, the continued rotation of money into the “other 493” stocks and small caps suggests that trend could continue - and that’s where I believe the real opportunity lies.

In this type of sell-off, almost all stocks decline, regardless of sector, fundamentals, or long-term story. Over the next few weeks, market action will likely be driven by headlines and emotion. Everything else can temporarily take a back seat.

When the music stops, I want you ready to choose the chair you want to sit in. And that only happens if your watchlist is prepared in advance.

History shows markets often bottom during peak geopolitical fear, not months later.

This Thursday at 12pm ET I’m going LIVE to break down:

Fear creates headlines. Opportunity creates wealth.

Just click “Notify Me” after using the link below.

NextPower is a $15 billion company in the solar sector - but it’s not your typical solar stock. The company provides solar tracking technology that allows panels to follow the sun throughout the day, maximizing energy capture. It is highly profitable and is expected to earn $4.79 per share for the fiscal year ending next March, giving it a forward P/E ratio of about 21.

The stock was a top performer in 2025 for our Select Portfolio, gaining 139%. A pullback of nearly 25% over the last two weeks has brought shares back to a level that could soon present a compelling buying opportunity.

Baidu is a $42 billion Chinese technology leader focused on artificial intelligence and autonomous driving. The company owns Apollo Go, the world’s largest robotaxi operator, with more than 1,000 vehicles and over 17 million cumulative rides as of late 2025.

Trading at a forward P/E ratio of 15.2 and expected to deliver double-digit average growth over the next few years, the stock is already at attractive levels. Shares are down nearly 30% since hitting a multi-year high in January. Once geopolitical headlines begin to cool, this could be both a strong trading opportunity and a compelling long-term investment.

These are just two examples to help guide your thinking as you build your watchlist. It’s never too late to prepare for the moment when the market flashes green again.

Talk soon,
Matt McCall
Founder, NXT Wave Research