The key reversal day on Oct. 30 on the Dow Jones Industrial Average, S&P 500, Nasdaq and Russell 2000 puts enormous pressure on the bulls to overcome this negative technical development.
The higher-quality stocks of the Dow and NYSE Composite must respond with a heavy counterpunch to turn back the bears. With the new money that usually flows from pension plans at the beginning of the month, they may have the power to turn the market up. But if this new money fails to turn around October’s negative close, we could be in for some serious profit-taking and perhaps even a correction of 8% to 10%.
Now is a good time to weed out weaker names that could suffer more than others. Here is our list of stocks to sell in November: