4 Stocks To Buy In 2010 Q1 Results

April 1st, 2010 | Filed under: Stock Recommendations, , , , ,

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It’s that time of year again. Time to revisit my 4 stock picks for 2010, see where they stand now, and where the combined return ranks among other competing bloggers.

After posting a lofty 70% return in 2009, I have to admit the pressure was on to try and match those results in 2010, especially considering how easy it was to make money in the rebounding market of 2009.

Remember that this is a year long process, so we shouldn’t get too high or too low on the current standings of these picks.

To learn more about how I read stock charts, check out the resource I have put together at Chart Pattern Manifest. Also consider taking the stock trading course.

Before getting into the nitty gritty of it all, lets first look at the results…

Ticker Initial Price ($) Price End 3/31/10 ($) YTD Change (%)
VALE 29.53 32.19 10.89
SLB 66.39 63.46 -2.5
BAC 15.24 17.85 18.53
CAT 57.60 62.85 10.27
Total 9.3

YTD Market Change: Dow 4.11% | S&P 500 4.87% | Nasdaq 5.68%

All data is taken as of market close on March 31, 2010. Total calculated by taking average of all 4 returns.

I don’t know if it is a good sign or bad sign, that my returns for the 1st quarter of 2010 (9.3%) are nearly 20% better than that of the 1st quarter of 2009 (-8.5%). I guess that really shows you what a great run we had for the rest of 2009.

Overall, this early part of 2010 has been better than expected in my opinion. Gains could have even been larger, but recent selling as of late has brought results down a little; nonetheless, I am satisfied with where all 4 of my stocks stand so far.

Bank of America (BAC)

In the initial analysis, you’ll remember that I was close to choosing JP Morgan over Bank of America. Thankfully, year to date, Bank of America has performed 11% better, and I still believe there is a lot of upside left in this stock.

At the beginning of the year, we were looking for BAC to jump above the 38% retracement level in its start to get back up into the 30′s. With one quarter down, BAC has taken out the 38% retracement.

While it could test that line again, I’m looking for this stock to be above the 50% retracement by the end of the 2nd quater. Granted this market continues to move higher.

view trend analysis

Vale S.A (VALE)

To be honest, I haven’t paid attention to this stock as much as the others. Mainly because I didn’t expect much to happen here within just the first quarter.

In the initial analysis, I stated that I wanted this stock to get above $30 to really start seeing some movement. Well it has clearly passed that level and will now move freely between the 62 and 100% retracement.

Two days ago analysts upgraded price targets on this stock to $36 from $29, so another good sign in its favor; moreover, the price of iron-ore continues to rise, which should only benefit this stock even more.

view trend analysis

Caterpillar (CAT)

One of my favorite stocks to play, Caterpillar has definitely made some large swings, both up and down, during this first part of 2010.

This stock has clearly moved above the 62% retracement, and took out another level of resistance as well. Next target is $70.

view trend analysis

Schlumberger Limited (SLB)

The most disappointing of the 4 stocks, there should still be happy days for Schlumberger come latter half of 2010.

Oil is just now really starting to make strides and cause some debates, so just sit back, be patient, and wait for this stock to move higher. Ideally, we would want this stock to get back into the channel (signaled by green lines).

We don’t want it to dip down below the 200-day moving average.

view trend analysis

Overall, I’m pretty satisfied, with the how the stocks have performed thus far in 2010. The key for the 2nd quarter is that the market continues to go up. If this happens, then I am more than confident that these 4 stocks should cruise to higher prices.

Competing Blogger Rankings

Rank Site YTD Return (%)
1 Dividend Growth Investor 9.58
2 The Wild Investor 9.30
3 My Traders Journal 5.78
4 Where Does All My Money Go 5.45
5 The Financial Blogger 2.87
6 Zack Stocks 2.55
7 Four Pillars -1.01
8 Intelligent Speculator -1.27
9 Million Dollar Journey -11.83

All data is taken as of market close on March 31, 2010. Total calculated by taking average of all 4 returns.

What to do now?

A lot has been thrown at you, so what to do now?

  1. Learn how use technical analysis.
  2. Get a free trend analysis of these stocks or any stock.
  3. Leave a comment below. What do you think about the results so far?

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