U.S. markets rolled over after the Federal Reserve's January statement was released yesterday, as investors got spooked by the idea that the Fed might be backpedaling on its rate hike plans for 2016.
The big S&P 500 index gave back another 1.1% by the closing bell Wednesday, ratcheting this year's price decline in the S&P to 7.9%. Just to put that number into some context, that drop annualizes out to a 67% drop.
Luckily for investors, there's some good news hidden away behind the scary market stats. While the market averages are looking sullen this month, some stocks are actually working in this market. Almost 15% of the individual stocks in the S&P 500 are actually up in 2016, and about a quarter of S&P components were effectively hovering at a 52-week high sometime in 2016.
It's probably not a shocking piece of advice that the stocks that are working are the stocks you want to own this year.
What might be more surprising is the fact that some Wall Street's biggest names are suddenly looking ready to make breakout moves as January comes to a close. To figure out which stocks you'll want to own as we head in February, we're turning to the charts for a technical look.
First, a quick note on the technical toolbox we're using here: Technical analysis is a study of the market itself. Since the market is ultimately the only mechanism that determines a stock's price, technical analysis is a valuable tool even in the roughest of trading conditions. Technical charts are used every day by proprietary trading floors, Wall Street's biggest financial firms, and individual investors to get an edge on the market. And research shows that skilled technical traders can bank gains as much as 90% of the time.
Every week, I take an in-depth look at big names that are telling important technical stories. Here's this week's look at five big stocks to trade.