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3 Stocks to Buy in October

stocks to buy - 3 Stocks to Buy in October

Source: Shutterstock

History doesn’t necessarily have to repeat or even rhyme. With a September correction under our belt and despite what you’re hearing, October doesn’t have to be a month to fear. Moreover, the price charts of the following three stocks to buy suggest plenty of treats rather than bearish tricks for today’s bullish investors.

Boo! Has the market bottomed? There’s no guarantees of course. News overnight POTUS and others in the White House’s inner circle have tested positive has spooked the market. The market hates uncertainty of course, unless it’s climbing a wall of worry.

So, what are investors supposed to do regarding stocks to buy in October?

What is known is September’s 13% correction in the leading Nasdaq Composite was a doozy, and much more so in the index’s most influential stocks like Apple (NASDAQ:AAPL), Tesla (NASDAQ:TSLA), Amazon (NASDAQ:AMZN) and others. That’s no surprise of course. As twisted as that may seem, that’s good news which in 2020, has only gotten even better.

What’s not being reported today by a financial media interested in selling chaos and unrest is that historically most market corrections don’t grow larger and eventually into full-blown bear cycles. Additionally, with the VIX, or “fear index” spiking as high as 38% during the period, panic by investors worthy of a bottom looks contextually solid.

There are other reasons to be optimistic too. The Nasdaq Composite scored an early indication last Friday warning of a new market rally. Even burlier price performances off critical bottoming patterns from the index’s notorious top performers confirmed the idea. Importantly, leading stocks such as Zoom Video (NASDAQ:ZM), Fastly (NYSE:FSLY), and Enphase Energy (NASDAQ:ENPH) have also continued to do what they do best, i.e. demonstrate relative and absolute price strength.

According to the fact checkers and analysts responsible for popularizing the critical market-timing tool called the follow-through day, or FTD, the Dow Jones generated a weaker-looking signal in Wednesday’s session. All told, its time investors look past Friday’s headlines and at three other stocks to buy which also disavow fearmongering and endorse reasons to believe more positive truths are here today.

  • TradeWeb Markets (NASDAQ:TW)
  • Twitter (NYSE:TWTR)

Stocks to Buy: (JD) (JD) second stage bullish base forming
Source: Charts by TradingView

The first of our stocks to buy is JD is China’s largest online retailer and shares have been on a tear in 2020. It’s up just over 100% since the start of the year. JD also has a rare bullish distinction as the stock’s year-to-date gains are larger than the low associated with the March Covid-19 market bottom.

Technically, JD’s best days don’t appear to be behind it either.

After breaking out of a massive 2.5-year long corrective base, this stock to buy is now forming a second weekly base. Lower base counts of three or less are typically more productive for breakout opportunities which work consistently. Given the overall bullish market environment, a confirmed candlestick pivot low for JD’s base-in-progress and on-the-cusp stochastics crossover, this stock looks worthy of buying on today’s weakness right here, right now.

Tradeweb Markets (TW)

Tradeweb (TW) confirmed monthly bottom
Source: Charts by TradingView

The next of our stocks to buy are shares of Tradeweb Markets. This recent IPO and fintech play operates as an over-the-counter, electronic marketplace for financial contracts of all types. Tradeweb has already caught the eye of notorious businessman, celebrity and Dallas Mavericks owner Mark Cuban. TW has captured our attention as well, but for other reasons in today’s market.

Technically, Tradeweb shares confirmed a classic corrective hammer candlestick test of its prior highs and 50% retracement level. The price action received validation as the monthly September candle cleared the August pattern high of $58.22. Less than 1% from a picture-perfect confirmation purchase, TW is a stock to buy today with an eye on new highs into 2021.

Twitter (TWTR)

Twitter (TWTR) monthly W mid-pivot entry for bullish investors
Source: Charts by TradingView

The last of today’s stocks to buy is Twitter. Twitter is a social media platform for POTUS to blow his horn and fearmonger. You knew that of course. To be fair, there are other reasons to appreciate Twitter. And currently one of them is as an investor capitalizing on a well-positioned stock chart.

The provided monthly chart of TWTR shows the stock just clearing its lifetime 50% retracement level within a very deep, multi-year base. With the price action also moving shares slightly through a smaller bullish mid-pivot inside a ‘W’ double-bottom base, as they say, “It is what it is” and this is a stock to buy.

On the date of publication, Chris Tyler holds, directly or indirectly, positions in Tradeweb Markets (TW) and its derivatives, but no other securities mentioned in this article.

Chris Tyler is a former floor-based, derivatives market maker on the American and Pacific exchanges. The information offered is based on his professional experience but strictly intended for educational purposes only. Any use of this information is 100%  the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits.

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