- Stocks may take a breather until after Labor Day, but the market’s overall trend is still up. And even after a rocky first day of September, momentum is still bullish, sentiment is again bullish, and the monetary indicators are bullish. The selling could continue for a couple more sessions, but it is more likely that it will end soon.
- So this pullback could offer you the chance to buy the best stocks at reduced prices before they head higher. What are those stocks? Well, I see six that are giving off extremely bullish signals right now.
- Keep reading to get six stocks to buy now that I feel very confident about long term.
Next: Diamond Offshore Drilling (DO)
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#1 – Diamond Offshore Drilling (DO)
Worldwide offshore oil and gas drilling contractor Diamond Offshore Drilling (DO) has formed a massive bottom known as a cup-and-handle — a very bullish formation — coupled with a gold cross (also bullish), and recently flashed a buy signal from the MovingAverage Convergence/Divergence (MACD) indicator.
In order for DO to make the final breakout, it must penetrate the triple-top at $94.50. If it can do it, the price objective is at least $110 with
a longer-term goal of $150. DO pays a dividend of $8 per share, giving it a dividend yield of 8.8%.
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#2 – Family Dollar Stores (FDO)
Family Dollar Stores (FDO) operates a chain of discount retail stores. As one of the great “dollar stores,” it often leads the retail group.
The chart is loaded with bullish technical signals including a gold cross, a new buy signal from the stochastic and a build up of buying volume.
- All that it needs to complete the picture is a breakout from the triangle.
To do that it must close above $33 on high volume. The target is $42.NEXT – Bullish Play #3 – Teva Pharmaceutical
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#3 – Teva Pharmaceutical (TEVA)
Teva Pharmaceutical (TEVA) engages in the development, production and sale of a range of generic and branded pharmaceuticals, biogenerics and active pharmaceutical ingredients (APIs) worldwide.
The long-term chart shows a stock that has never been in a bear market. The recent resistance line is merely a pause in its long-term upward march, and it was broken by heavy buying in April. Teva ran to a new all-time high above $55, and then pulled back on profit-taking.
Buy TEVA now. It is a cornerstone stock that should be part of every high-quality portfolio.
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#4 – United Technologies Corp. (UTX)
United Technologies Corp. (UTX) provides technology products and services to the building systems and aerospace industries. Its stock has built a strong base that began in October 2008. In early July, UTX flashed a bullish gold cross. Then, in
mid-August, it broke out from a quadruple-top.This is all very bullish technical stuff that should result in much higher prices for UTX with a minimum target of $70 to $75.
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#5 – Vanguard FTSE All-World ex-US ETF (VEU)
Vanguard FTSE All-World ex-US ETF (VEU) seeks to track the performance of the FTSE All-World ex-US Index, which is made up of approximately 2,200 stocks of companies located in 46 countries. Sometimes we see a chart that technically seems to have it all, and this is one.
Note the very bullish cup-and-handle followed by a gold cross, which is executed at the beginning of a bull channel and accompanied by very high
buying volume. The MACD has issued a buy signal, so it is possible for VEU to break above the bull channel with a target of $54 or even higher.
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#6 – Honeywell International (HON)
Honeywell International (HON) is a diversified technology and manufacturing company. The stock tripled in price from late 2002 to early 2007. But, in June 2008, the stock broke support and plunged. By November, it was trading for less than $24.
The stock established a solid “W” base with support at the 200-day moving average at $32. Then, on Aug. 24, HON broke out from a triple-top on very
high volume — a signal that could drive the stock to my target of $50.
