Without a doubt, some big pockets of the market are working again this autumn.
October has brought an about-face for the markets. Since the calendar flipped to the new month, the big S&P 500 index has managed to rally 5.79%, putting it back within grabbing distance of breakeven before year-end.
More important, that rally has seen participation from the majority of individual issues. Since the beginning of the month, 90% of the individual stocks in the S&P are up. That's some attractive breadth.
As impressive as the big picture looks right now, zooming in to stocks on an individual basis reveals some major strength beneath the surface. So far, a full 20% of individual S&P 500 components are up 10% or better since October, indicating that a big chunk of individual stocks are doing considerably better than the market averages suggest.
To find the stocks that look best-positioned to outperform this fall, we're turning to the charts for a technical look.
In case you're unfamiliar with technical analysis, here's the executive summary: 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, here's a rundown of five technical setups that are showing solid upside potential right now.