BALTIMORE (Stockpickr) -- Mr. Market is starting to consolidate this morning, correcting after rallying hard for all but a handful of days in 2013.
While it may not seem like it at first glance, a measured pullback is hugely constructive for a longer-term stock rally. It gives investors a chance to catch their breath after such a big move this month before giving it another go. More important, it gives investors a nicer entry point for piling onto their equity positions; after all, you can't "buy the dips" in a market where there aren't any dips.
And as far as my analysis is concerned, this is certainly a "buy the dips" kind of market.Not all stocks have been participating in January's equity rally, and in most cases that's been a red flag worth heeding. But in a select few names, signs of bottoming price action point to stocks that could be making up for lost time in February. Today, we'll take a technical look at five of them. >>5 Stocks Setting Up to Break Out For the unfamiliar, technical analysis is a way for investors to quantify qualitative factors, such as investor psychology, based on a stock's price action and trends. Once the domain of cloistered trading teams on Wall Street, technicals can help top traders make consistently profitable trades and can aid fundamental investors in better planning their stock execution. So, without further ado, let's take a look at five technical setups worth trading now. >>5 Rocket Stock to Buy This Week
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV