It has been ages since bulls had to deal with any nasty plot twists. But one finally arrived over the weekend in the form of a tweet by President Trump threatening to increase tariffs on imported goods from China. The subsequent market turmoil has bears on a rampage, but there are still good stocks to buy.
Today we’ll look at three of the best.
It may seem counterintuitive to shop for buys when the sky is falling, but are we not taught that profits flow from buying low? Well, prices for many stocks are a few percent lower than Friday. But you don’t have to attempt a daring knife catch. Days like today reveal which stocks are really in demand. Some companies were aggressively sold at today’s down open, but others were quickly bought.
It’s this latter group that interests us the most. Let’s take a closer look at three stocks to buy despite the turmoil.
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Even after a quarter where Apple (NASDAQ:AAPL) stock rallied some 21%, it was still able to gap higher to a fresh seven-month high on earnings last week. The recent strength made this morning’s down open a critical test of whether the bid beneath the surface was still alive and well.
As I write this, 90 minutes into the trading session, AAPL stock has rallied 2% off the lows to cut its day’s losses in half. That kind of snapback is exactly what shareholders want to see as confirmation of relative strength.
While we may need some backing and filling before the selling pressure ends, this dip should ultimately prove a buying opportunity. Mark today’s high ($208.71). If we take it out over the coming days (or later today), then bull trades are worth a shot.
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The trend in Paypal (NASDAQ:PYPL) this year has been one for the textbooks. Just look at how it has been respecting the 20-day and 50-day moving averages. Both have provided support on the way up. PYPL could be the poster child for a trend in motion remaining in motion.
Last week’s launch to a new record high reaffirmed buyers’ dominance and reminded spectators that it’s a stock worth buying into weakness.
Well, weakness has arrived and this morning buyers are on the move. I suggest you join them. Because implied volatility is low, bull call spreads are worth a shot. Buy the June $110/$115 bull call spread for $2.26.
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Software stocks are flexing some serious muscle this morning. Workday (NASDAQ:WDAY) is sporting a robust bullish candle, notching new intraday highs as I type. The overall trend for WDAY stock is bullish with its price rising atop ascending 20-day, 50-day and 200-day moving averages.
This morning’s down-gap was aggressively bought at the rising 20-day as well as an old resistance zone, which has now become new support. As long as WDAY remains above $195, the path of least resistance is higher; $220 is the next upside target.
Buy the June $210/$220 bull call spread for $3.40.
As of this writing, Tyler Craig didn’t hold a position in any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility.
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