5 Stocks to Buy in April

The technicals say these blue chips are buys thanks to price momentum and seasonal strength

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5 Stocks to Buy in April

The market opened the second quarter with such serious and extended selling that it’s hard to believe there are any stocks with price momentum left. But … some blue chips still very much qualify as stocks to buy.

Bull185 5 Stocks to Buy in AprilThe S&P 500 notched an all-time closing high on April 2, but since then, stocks have struggled to maintain. The broader market is off more than 2.5% since then, led down by high-flying momentum stocks and sectors.

Of course, it’s always important for the market to bleed off some steam after an extended run. After all, it’s the backfilling — the buying by investors looking for better prices — that sets the foundation for new highs later. And with the S&P 500 rising nearly 10% in about two months … well, it was probably time for a breather.

However, as tempting as a selloff like this can be for anyone looking to get some deals on price, there’s no sense in buying a bargain with broken technicals. Cheap stocks can always get cheaper, and cheap stocks stuck in a downtrend can be a very expensive mistake.

When markets are wobbly, there’s nothing quite like the comfort to be found in blue chips. Happily, there are a number of these stalwart stocks — even components of the Dow Jones Industrial Average — that have both price momentum and seasonal strength.

Against this market backdrop, here are the top five stocks to buy in April:

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Article printed from InvestorPlace Media, http://investorplace.com/2014/04/stocks-to-buy-in-april/.

©2014 InvestorPlace Media, LLC

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