Secure Stocks for an Unsure Market High unemployment, a shaky economy with talk
of a "double-dip recession," and more debt crises in Europe drove stocks
lower in August. And fear of lower prices has kept the public out of stocks
following the breakdown of the major indices early in the month. Technically a
Dow Theory Bear Market signal resulted from a mid-month breakdown, and other
technical characteristics followed including a "death cross" and a plunge in
the S&P 500 to 1,101 and last summer's trading range. Late in the month, the
indices formed symmetrical triangles, which are continuation patterns that
indicate indecision in this case a three-week period of indecision due to the
withdrawal of the public from a market that is in the hands of "high-frequency
trading." Normally a pattern like this breaks in the direction of the major
trend (down). But due to the currently unnatural source of trading (computer to
computer), it could break on the upside and run the broad market back to the
breakdown point at 1,260. But lower prices also provide opportunities to buy
quality stocks at bargain prices, and this month's list of stocks to buy has
been examined for those opportunistic bargains. Here are the top stocks to buy
for September:
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