On the last day of June, which marked the end of the second quarter, positive European headlines drove the S&P 500 up 2.5%. This last-minute rally popped the major indices through their respective 50-day moving average lines, giving the bulls hope that enough buyers would emerge to keep the rally going.
But recent history does not support buyers who invest solely on the vagaries of European economic politics. Instead, investors should focus on U.S. markets for guidance, and the technical picture tells us that, for both the near and intermediate term, the bulls are not out of the woods.
Currently, stocks are somewhat overbought and due for a minor correction, but for the summer, they appear range-bound to roughly the lows and highs of June. Longer term, the bull is still in charge, so wise investors should respond to weakness as a buying opportunity.
This month’s emphasis is on stocks that should do well despite near-term market concerns. Here are your top stocks to buy for July: