Chipotle (CMG) climbs higher late Tuesday on Q2 earnings beat >>> READ MORE

Top 6 Stocks to Buy for October

These household names should perform well despite a slight correction in the overall market

    View All  

In mid-September, the market survived the latest Federal Reserve surprise — no tapering of its bond-buying program. The Dow Jones Industrial Average hit another new high, the S&P 500 rose to record territory, and the Nasdaq reached its best levels since September 2000. The bull market is still very much alive.

But it seems unlikely that the S&P 500 can sustain a run to another new high before testing support at 1,672 to 1,679 (20-day and 50-day moving averages), and perhaps even the intermediate trendline at around 1,650. Internal indicators are overbought and RSI on the leading index, the Russell 2000, flashed a “non-confirmation.”

Despite the Fed’s surprising decision to continue buying bonds in September, sources at their regional banks say that the Fed will soon taper, QE will end, and interest rates will normalize. Currently, equity values are slightly overbought, and investors who have cash to invest should focus on stocks with a solid history of earnings growth. Household names with broad support should perform well despite a slight correction in the overall market. So, this month, I’ve focused on names familiar to most investors and generally suggest buying them on weakness.

Here are your top stocks to buy for October:

Article printed from InvestorPlace Media,

©2017 InvestorPlace Media, LLC