4 Stocks To Buy In 2010 Q3 Results

September 30th, 2010 | Filed under: Editor's Pick, Stock Recommendations, , , , ,

First I was up, then I was down. Now, with 3 quarters down and 1 to go, it looks like my 4 stocks to buy in 2010 are on pace to end the year up double digits.

Banks still lagged, but technology helped keep the market pushing forward. I look for much of the same as we get closer to 2011.

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.

Without further ado, below is the breakdown of the Q3 figures…

Ticker Initial Price ($) Price End 9/30/10 ($) YTD Change (%)
VALE 29.53 31.27 8.20
SLB 66.39 61.61 -2.36
BAC 15.24 13.10 -13.88
CAT 57.60 78.68 41.42
Total 8.35

YTD Market Change: Dow 3.45% | S&P 500 2.33% | Nasdaq 4.37%

All data is taken as of market close on September 30, 2010. Total calculated by taking average of all 4 returns.

Bank of America (BAC)

While Bank of America started the 3rd quarter off with a nice push higher, the move quickly fizzled and it looks like we shouldn’t expect much of anything from this financial stock before the year is up.

The 50-day moving average has crossed below the 200-day moving average and the price has fell below support levels – obviously both are bearish signs.

view trend analysis

Vale S.A (VALE)

If you needed a safe stock, Vale was your best best bet. The stock hasn’t moved more than a couple points below or above where it started the year. Not to mention the growth play in Brazil.

Based on the fibonacci tracement we have been following since last quarter is looks like a new trading zone of $30 – $34 will be in play for the rest of the year.

view trend analysis

Caterpillar (CAT)

I think we found the winner out of the bunch. With growing activity in Brazil and China, it was only a matter of time before this stock regained the value is didn’t deserve to lose.

A nice cup and handle pattern has appeared with a solid breakout. Based on this pattern, don’t be surprised to see Caterpillar around $85 by year end.

view trend analysis

Schlumberger Limited (SLB)

Is it just me or does this stock really like to move in trends? While the stock value has yet to recover from the unpredictable oil spill, it has made decent strides to at least regain the price is saw when the year started.

Look for a key break of the 200-day moving average and lets see if Schlumberger can reground any ground before the year is over. With multiple analyst price targets in the high 70′s low 80′s, it is only a matter of time.

view trend analysis

Overall, I am very confident in where my 4 stocks stand. I expect to see Caterpillar, Vale, and Schumberger finish the year higher, while I don’t expect much from Bank of America.

Competing Blogger Rankings

Rank Site YTD Return (%)
1 Dividend Growth Investor 21.34
2 The Wild Investor 8.35
3 Zack Stocks 0.84
4 My Traders Journal -1.31
5 Where Does All My Money Go -2.90
6 Intelligent Speculator -7.86
7 Million Dollar Journey -10.46
8 The Financial Blogger -15.24
9 Money Smarts Blog -27.07

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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