10 Bullish Ideas for a September Selloff

Investors might be tempted to time future stock market performance with the month of the year, and September is no exception.

Mark Hulbert of MarketWatch, recently identified a correlation: When the Dow Jones Industrial Average is ahead through Labour Day, stocks would rise for the remainder of the year.  Hulbert concluded that since the Dow is up 7.1% through last Friday’s close, there is a 70% chance that after September, the market will go up for the remainder of this year. As it stands now, excessive bullishness and a historically weak month suggest that markets will move lower in September.

Seasonality

Timing markets should not to be confused with seasonality. Seasonality is more probable, because it is based on regular events recurring, year after year. Seasonality is typically restricted to a sector, instead of the market as a whole. Back to school, Christmas, or computer electronic shows are examples of recurring events. Investors could anticipate a boost in demand in consumer, consumer discretionary, or technology sectors to profit from markets.

Business Section: Investing Ideas

Does September’s performance really matter for investors with a long term time horizon? In the short-term, it probably matters more for traders looking to make a small gain. For the long term, a weak September could mean lower stock prices. This creates new buying opportunities.

The most actively traded companies is a good place to start looking for trades and for long-term opportunities in a September sell-off. Some of the most active companies worth adding to your Kapitall watch list are:

List Average 1-Year Return: 17%

1. Bank of America Corporation (BAC, Earnings, Analysts, Financials): Provides banking and financial services to individuals, small- and middle-market businesses, corporations, and governments primarily in the United States and internationally. Market cap at $86.22B, most recent closing price at $8.0.

2. Microsoft Corporation (MSFT, Earnings, Analysts, Financials): Develops, licenses, and supports a range of software products and services for various computing devices worldwide. Market cap at $254.77B, most recent closing price at $30.39.

3. Intel Corporation (INTC, Earnings, Analysts, Financials): Engages in the design, manufacture, and sale of integrated circuits for computing and communications industries worldwide. Market cap at $122.17B, most recent closing price at $24.42.

4. General Electric Company (GE, Earnings, Analysts, Financials): Operates as a technology, service, and finance company worldwide. Market cap at $216.56B, most recent closing price at $20.51.

5. Ford Motor Co. (F, Earnings, Analysts, Financials): Develops, manufactures, distributes, and services vehicles and parts worldwide. Market cap at $35.89B, most recent closing price at $9.41. Ford shares are down due to weak sales in Europe.

6. Pfizer Inc. (PFE, Earnings, Analysts, Financials): A biopharmaceutical company, offers prescription medicines for humans and animals worldwide. Market cap at $177.62B, most recent closing price at $23.78.

7. Altria Group Inc. (MO, Earnings, Analysts, Financials): Engages in the manufacture and sale of cigarettes, smokeless products, and wine in the United States and internationally. Market cap at $69.93B, most recent closing price at $34.40. Altria pays a dividend of $1.76, or 5.20%

8. Cisco Systems, Inc. (CSCO, Earnings, Analysts, Financials): Designs, manufactures, and sells Internet protocol (IP)-based networking and other products related to the communications and information technology industry worldwide. Market cap at $101.78B, most recent closing price at $19.0.

9. Halliburton Company (HAL, Earnings, Analysts, Financials): Provides various products and services to the energy industry for the exploration, development, and production of oil and natural gas worldwide. Market cap at $29.83B, most recent closing price at $32.15.

10. AT&T, Inc. (T, Earnings, Analysts, Financials): Provides telecommunication services to consumers, businesses, and other service providers worldwide. Market cap at $212.36B, most recent closing price at $36.81.

To get a snapshot for each company, click on the company icon. To get more detailed fundamental information on any of the companies, open the snapshot and select “number cruncher.”

The author holds a long position in Ford (F).Written by Chris Lau.

Use Kapitall’s Tools: Looking for ways to analyze this list?

Use this article snapshot as a launch pad (click here for help): Simply click on the links, and use Kapitall’s tab navigation to browse through the data…

Analyze These Ideas: Getting Started

• Read descriptions for all companies mentioned
• Access a performance overview for all stocks in the list
• Compare analyst ratings for the companies mentioned
• Compare analyst ratings to annual returns for stocks mentioned
• Real-Time Opinion: Scan the latest tweets about these companies (feed will open in a new window)

Dig Deeper: Access Company Snapshots, Charts, Filings

• Bank of America Corporation (BAC, Chart, Download SEC Filings)
• Microsoft Corporation (MSFT, Chart, Download SEC Filings)
• Intel Corporation (INTC, Chart, Download SEC Filings)
• General Electric Company (GE, Chart, Download SEC Filings)
• Ford Motor Co. (F, Chart, Download SEC Filings)
• Pfizer Inc. (PFE, Chart, Download SEC Filings)
• Altria Group Inc. (MO, Chart, Download SEC Filings)
• Cisco Systems, Inc. (CSCO, Chart, Download SEC Filings)
• Halliburton Company (HAL, Chart, Download SEC Filings)
• AT&T, Inc. (T, Chart, Download SEC Filings)

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