For all the excitement of markets notching or closing in on all-time highs, stocks haven’t really gone anywhere in a couple of months. Volatility doesn’t make it feel this way, but after crawling out of a deep hole early in the year, the S&P 500 has been fairly rangebound. Indeed, as of Wednesday’s open the broad market index was still at a level it first crossed in early March.
Price momentum, a solid relative strength index and promising seasonality are three elements you’ll find in short-term stocks to buy. If they’re well-known large- and mega-caps, so much the better.
It also helps if the stocks to buy in question are outperforming or even crushing the market so far in 2014. No, certain technicals wouldn’t be there if they weren’t, but there’s an added benefit to such gains. Be they individual investors or institutional ones, most people can’t help but chase performance.
In such a flat year for stocks, investors greedy for gains or just trying to protect their careers would be hard-pressed not to pile into technically strong, market-busting stocks.
After scouring key technicals, these are the top five stocks to buy in May: