6 Top-Rated Stocks to Buy Now
Sam Collins, October 7, 2009
Free Trading Guides
-
#5 SPDR S&P Homebuilders ETF (XHB)
How to go after money-doublers with every trade you makeThe SPDR S&P Homebuilders ETF (XHB) bottomed in March and made a direct run to the 200-day moving average by the end of April. In mid-July, it executed a gold cross, which indicated that its long-term trend was about to change. By early August, it had broken the high of July, establishing an uptrend.
Since then it has been trading within a bull channel, but recently broke the 50-day moving average (blue line) suggesting that XHB will head for the support line and 200-day moving average at around $12.50.
For those who think that the economy is turning, the homebuilders may be a good long-term investment, since prior to the economic crisis XHB traded above $40 and should participate in a new recovery.
Take our Technical Analysis IQ Test.
More By This Expert
Don't Get Burned by the Market
Investors who try to anticipate the market's next move may get burned. Your best course of action here is to be patient.
Leverage a Bet on the Nasdaq 100
The ProShares Ultra QQQ (QLD), which delivers twice the daily performance of the Nasdaq 100, hit a new 18-month high this week, and doesn't appear to be stopping.
The market will eventually break to new highs, but it will likely remain within the current narrow zone of support for several more months.
An 'Ultra' Risky Bet on the Financials
If you have the stomach for a high-risk trade that could pay out big, now is the time to buy the ProShares Ultra Financials (UYG).
2 Sectors That Might Keep the Market Afloat
If technology and financial stocks can break through major technical resistance, the market could continue to go up for several more days.
