The Leaves Are Starting to Change: September Swoon and Golden Cross Stocks
The leaves are starting to change colors, pumpkin spice is back in your latte, and the stock market… well, it's having a meltdown. Welcome to the dreaded “September Swoon,” folks. It's like clockwork! Every year, right around this time, the market gets a bad case of the jitters, and investors start hitting the sell button like it's going out of style.
But here's a little secret the Wall Street fat cats don't want you to know: This September selloff is usually temporary. It's driven by fear and uncertainty, not by fundamentals.
Savvy investors aren't fazed by the gloom and doom. They use this weakness to scoop up incredible stocks at discount prices, setting themselves up for a fourth-quarter rally and a profitable year-end.
And guess what? You can too.
Our friend Chris Johnson, a seasoned market veteran and technical whiz at Money Morning, has his finger on the pulse of the market. He says that despite the recent selloff there are stocks that are showing incredible strength.
How does he find them? He looks for stocks forming what's called a “Golden Cross,” which occurs when a stock’s 50-day moving average moves above its 200-day moving average.
Chris says this pattern indicates an upward shift in a stock's momentum, and predicts that “stocks making a Silver or Gold Cross are gaining positive momentum. This means that their bullish trends are gaining even more strength.”
Using this simple concept, here are 3 “Golden Cross” stocks to buy now.
Clorox (CLX)
Clorox is the king of clean. You know them, you love them. They make the bleach that disinfects your countertops, the wipes that clean up sticky messes, and everything in between. In a nutshell, they sell the kind of stuff people always need.
And that fact makes CLX a recession-proof stock.
In fact, as Andrew McGuirk at Stansberry Research points out, there are several other consumer staples stocks that are making “new highs of note” each week, “even as the overall market continues to grind higher.”
Clorox is no exception, and the chart itself is painting a bullish picture.
CLX is trading in a well-established uptrend, as confirmed by a rising 50-day moving average. This trend was further reinforced by a recent “Golden Cross.”
Here’s the bottom line. The consumer staples sector is strong right now, and Clorox is well-positioned to capitalize on this. The company pays a hefty dividend (current yield of 3.38%!), and as we discussed above, Chris Johnson thinks that “investors (are) continue to look for dividend yielding growth stocks in 2025,” and that momentum could drive CLX to a $200 price target.
Medtronic (MDT)
If you've ever had a pacemaker, you can thank Medtronic. They're the world's largest medical device company, making everything from heart valves to insulin pumps.
Just like Clorox, Medtronic’s is in a sector that is somewhat impervious to economic downturns. People get sick whether the market is booming or busting, and they need medical devices.
MDT's chart is also flashing “Buy” signals.
As Chris Johnson tells us, it “just made a momentum breakout above $85 a few weeks ago after their earnings results impressed investors. A result of that breakout is the Golden Cross that just formed on the stock as it gains positive momentum.”
Investor Takeaway: The healthcare sector continues to be a winner. The recent uptick in MDT's momentum and its “Golden Cross” formation suggest that the company's stock price is poised for a new rally, potentially reaching $125, according to Chris Johnson.
Teleflex (TFX)
Teleflex is another medical device company – this time focusing on products for critical care, surgery, and vascular access.
Chris Johnson thinks that TFX is a buy opportunity, “as the stock is heading towards a $250 price, but that’s the beginning. Shares just broke into a new long-term bullish trend two months ago, meaning that the stock is gaining long-term strength.”
The key insight? Even in a turbulent market, some sectors are still going strong. Teleflex is part of a winning medical device industry, and Chris Johnson thinks that “a $275 price target on shares of Teleflex over the next 3-6 months” is quite achievable.
Don’t let September's rocky start scare you away from these “Golden” opportunities. CLX, MDT and TFX are all set to reward bold investors – even if the broader market pulls back more. These three winning companies are setting themselves up for a fourth-quarter rally, and you don't want to miss out!
P.S. Tomorrow we are diving head first into the world of Artificial Intelligence. We'll be looking at an AI stock that just hit one of our guru's “Buy” list, and he thinks it could easily TRIPLE. Don't miss out!
