The public is terrified to own stocks. And who can blame them? The news from Europe, and now Asia, is so grim that many investors are convinced that even if the U.S. economy manages to blunder through, they want nothing to do with stocks. And with every major index now below its 200-day moving average, there has been significant technical damage done to virtually all U.S. markets.
However, the technical indicators and sentiment numbers are now saying the market is grossly oversold. And it's looking less and less likely that the problems in Europe are going to derail the U.S. economic recovery. So, with the S&P 500 down more than 10% from its April high, stock prices look very enticing.
But investors can't run out and buy anything and everything. They need to remain patient use the major moving averages (i.e., 20-day, 50-day and 200-day) to tell them when to buy. Here are six stocks that are good buys now.
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