There’s always a bull market somewhere. Of course, with our current rising-tide environment, it’s probably easier to spot the few isolated areas that aren’t bullish. With such a rich background, it’s become increasingly easy to scan the stock market for stocks to buy.
Today’s trio will be just that.
Successful trading is about preparation, not prediction.
By having strong stocks to buy on your watchlist, like today’s candidates, you will be prepared to profit if buyers emerge in the market this week.
Behold, three strong bull stocks to buy.
We begin with a stock whose trend is the envy of the Street. Adobe (NASDAQ:ADBE) will go into the history books as one of the biggest winners of this bull market. Its rise since the depths of 2009 has been as mindboggling as it has been consistent. After reporting earnings early this month, the software juggernaut suffered a bout of profit-taking. But it was mild and lacked any signs that would justify not buying the dip.
Today, buyers are emerging to defend the rising 50-day moving average. Even if we trade below this zone, I wouldn’t be too concerned. ADBE stock has had many prior probes below the 50-day before rallying back.
Sell the Oct $245/$240 bull put spread for around 65 cents.
Nvidia (NASDAQ:NVDA) is yet another of this bull market’s biggest winners. After last month’s earnings release, we saw a quick dip and then rousing rip to new all-time highs. The reason for today’s mention is NVDA stock has returned to the scene of its breakout. Spectators who missed the powerful August rally now have the chance to jump in near old resistance.
Couple that with the 50-day moving average that lurks close and the fact that we just retraced 50% of the prior advance, and I think this is as good a spot as any to begin deploying bullish trades.
The implied volatility is high enough to make bull put spreads interesting. Sell the Oct $240/$235 bull puts for 50 cents or better.
Target (NYSE:TGT) rounds out today’s candidates with a clean pullback to support. TGT stock has created an epic comeback story over the past year, and it now boasts one of the best uptrends in the retail sector. Last month’s earnings release delivered a modest up gap which saw follow-through to a new record of $90 per share.
Since then, a retracement to the 20-day moving average has materialized, providing an interesting buy the dip setup. Friday and today’s candlestick patterns suggest the selling pressure may not have fully played out yet. Both carry upper wicks which reveal the last two rally attempts have been rebuffed.
Regardless, I think the uptrend in TGT stock will eventually resume.
Buy the Nov $85/$90 bull call spread for around $2.50.
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Source: Investor Place