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Top 6 Stocks to Buy for January

Homebuilders and financials top this month’s list

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Focus on the Most Battered Sectors

Even though the economy appears to be gradually improving, global issues have yet to be fully addressed. The wide swings in the market generated by headlines are likely to remain a challenge for traders and investors alike. Thus, this year, the trading range of the S&P 500 could be as broad as 1,140 to 1,440.

But a recent report by the National Association of Realtors that pending home sales for November increased by 7.3% and an improving technical picture could result in a breakout by the sectors most severely impacted by the recession. A January surge is likely and buying the undervalued stocks of the financial and building industries might provide the best way to participate.

Here are your top stocks to buy for January:

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