Although we are in a long-term secular bull market, it is approaching important resistance at the March highs. This level also coincides with a significant resistance zone that eventually resulted in the market highs in 2007.
Stocks have advanced for several weeks, and the S&P 500 has gained almost 12% this year. Most of the big-name stocks have reported Q1 earnings, and 65% of the S&P 500 stocks have exceeded earnings estimates — a creditable but not spectacular performance in that many of the earnings estimates had been lowered.
The euro-contagion mess is still with us, along with concerns over China’s economic outlook. But these concerns are of a short to intermediate time frame. Thus, good quality stocks should be bought on pullbacks, and stocks that have just begun what appear to be major moves should be bought in stages starting now.
Here are your top stocks to buy for May: