It’s finally happened: After months of harrowing market volatility, things are perking up again.
On Monday, the Dow Jones Industrial Average popped up and over two-month resistance near 16,500 and is challenging its 50-day moving average for the first time since December.
Investors are responding with enthusiasm to recent commodity price gains, with lots of focus on industrial metals and related mining stocks.
The evidence suggests the uptrend should continue based on the intense quality of the three-day surge off of the Feb. 11 low.
Since last Friday, Jason Goepfert at SentimenTrader notes that S&P 500 put in three days where it never traded within 0.5% of the prior day’s close. That kind of buying pressure hasn’t been seen in nearly 35 years of market history.
In anticipation of a breakout above the 50-day moving average, here are 10 stocks worth buying.
Market Breakout Stocks to Buy: E I Du Pont De Nemours And Co (DD)
Dupont (DD) shares have popped up and over their 50-day moving average on Monday for the first time since December.
DD stock has already moved over its 200-day average, opening up the first confirmed uptrend initiation since October.
Edge Pro subscribers are playing along with a position in the March DD $60 calls.
Market Breakout Stocks to Buy: Apple Inc. (AAPL)
Tech giant Apple (AAPL) is in the news for its iPhone-unlocking privacy fight against the government, but investors are more focused on the upcoming 4-inch iPhone update and the iPhone 7 launch later this year.
The stock has spent the last two months basing below the $100 level and is now ready for an upside break above its 50-day moving average — also near the $100 level — that hasn’t happened in a big way since October.
Edge Pro subscribers are playing along with a position in the March AAPL $100 calls.
Market Breakout Stocks to Buy: Pfizer Inc. (PFE)
Pfizer (PFE) has been in a sustained downtrend since October — double topping near the $35.50 level — but has recently broken its downtrend pattern and looks ready for a surge above resistance near $35. The stochastic indicator suggests the five-month selloff is now over.
Edge Pro subscribers are playing along with a position in the March PFE $30 calls.
Market Breakout Stocks to Buy: Cemex SAB de CV (ADR) (CX)
Mexican cement-maker Cemex (CX) has been in a nasty downtrend since the summer of 2014 — when global growth expectations peaked and commodity prices started tumbling — that has seen CX shares lose more than 70%.
But a possible rebound is materializing now as the stock challenges two-month resistance near $5.50.
Edge Pro subscribers are playing along with a position in the March $5 CX calls that are already carrying a near 40% gain.
Market Breakout Stocks to Buy: United Technologies Corporation (UTX)
Diversified industrial giant United Technologies (UTX) is enjoying its first break above its 50-day moving average since December after finding support near the $85-a-share level reached back in September.
A run at the 200-day moving average, not touched since last June, would be worth an 8%-plus gain from here.
Market Breakout Stocks to Buy: Freeport-McMoRan Inc (FCX)
Freeport-McMoRan (FCX) shares have ramped to early December levels, doubling off of its January lows thanks to the rebound in precious and industrial metal mining stocks over the past month.
The company has also been the subject of interest by activist investor Carl Icahn to improve its balance sheet by cutting the dividend and selling assets.
The company will next report results on April 21 before the bell. Analysts are looking for a loss of 18 cents per share on revenues of $3.5 billion.
Market Breakout Stocks to Buy: General Electric Company (GE)
General Electric (GE) shares are attacking their 50-day moving average for the first time since October, setting up a challenge of the late December high and beyond, as the bulls roll back into the market after a harrowing couple of months. The last upward cross of the 50-day average gave way to a 20%-plus rally.
The company will next release results on April 22 before the bell. Analysts are looking for earnings of 20 cents per share on revenues of $28.6 billion.
Market Breakout Stocks to Buy: United States Steel Corporation (X)
Steelmaker stocks like U.S. Steel (X) have been on the skids for years, with the industry group overall losing 65% from the high set in 2014. But with so much value already lost, and the specter of an economic rebound fueled by renewed monetary policy stimulus rising, bargain hunters are starting to poke around with interest.
X shares, as a result, are lifting up and out of a consolidation range going back to November.
The company will next report results on April 26 after the bell. Analysts are looking for a loss of $1.15 per share on revenues of $2.4 billion.
Market Breakout Stocks to Buy: Qualcomm, Inc. (QCOM)
Qualcomm (QCOM) shares have been on the slide since the summer of 2014 on concerns over wireless royalty payments and the saturation of the smartphone market. That slammed shares for a 46% peak-to-trough loss.
Shares have become oversold, however, setting up a relief rebound rally to challenge the 200-day moving average at the least.
The company will next report results on April 20 after the close. Analysts are looking for earnings of 96 cents per share on revenues of $5.3 billion.
Market Breakout Stocks to Buy: Walt Disney Co (DIS)
One-time media darling Disney (DIS) has seen shares slammed over the last few months as Star Wars hype gave way to concerns about cord cutting and the health of its television franchises like ESPN.
A loss of roughly a third since November has brought out value seekers, however, helping shares rebound from the lows set earlier this month. Now, we’re looking at a possible breakout up and over resistance near $97.50.
The company will next report results on May 3 before the bell. Analysts are looking for earnings of $1.41 per share on revenues of $13.2 billion.