BALTIMORE (Stockpickr) -- Yesterday was an ugly day for stocks -- and not because of the 0.8% drop in the S&P 500. Even though that drop wasn't pretty, the big index has already had a dozen and a half worse single-day declines in 2014.
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No, that 0.8% number didn't come close to telling the whole story of the selloff.
One out of every eight S&P components sold off more than 2% yesterday. And in the tech-heavy Nasdaq 100, one out of every four stocks was down more than 2%. That's a bloodbath, especially when you consider that it followed a similar session on Friday.
So how do you avoid the next big down day? Buy the big stocks.
Staid blue-chip names have avoided most of this selloff thanks to a flight to quality that's been punishing this year's most conspicuous momentum names in recent sessions. More important, a handful of large-cap names are even pointing towards breakout moves in September.
To take advantage of that shift in stocks, we're taking a closer technical look at five blue-chip stocks to trade for gains in September.
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.
Without further ado, let's take a look at five technical setups worth trading now.
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