Strong Buy Stocks: Focus on The Trend & Not the Fear Factor

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Strong Buy StocksHow to Spot Strong Buy Stocks?

One way to determine strong buy stocks is by focussing on the strength of a stock relative to the market is to compare it to a major index. As the Dow is trading below its secondary support line, which falls in the 24,500 to 24,700 ranges. Any stock that is faring better than the Dow will hit a 52-week high well before the Dow does. For example, AMZN and NFLX have already achieved this milestone. This is a silent signal that this Bull Market has moved to Stealth mode and it’s during such times that one had the opportunity to book the most significant long-term gains.

Let’s take a look at some Strong Buy stocks

AMZN Amazon.com, Inc. daily Stock Chart

 

FB Facebook, Inc. daily Stock Chart

NVDA NVIDIA Corporation daily Stock Chart

 

EXPD Expeditors International of Washington, Inc. daily Stock Chart

 

UPS United Parcel Service, Inc. daily Stock Chart

 

VRNS Varonis Systems, Inc. daily Stock Chart

This exercise reveals several things:

Many of the former leaders have already priced the worst news in, and by default fall under the category of strong buy stocks. The stock market is predicting that they will fare well in the future. Secondly, it indicates that the bull is not dead as you would not have stocks in the technology sector, breaking out to new highs when the Dow is trading well of its highs. So, these players listed above are going to be the early winners; it does not mean the other candidates won’t perform well.  In many cases, on a percentage basis, they could perform even better, but the first leg up will favour the candidates listed above and candidates with a similar pattern.

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