Ready to Take Profits? Start With These 21 Blue Chips.

Last week I mentioned that September 30 is the drop-dead date to be fully invested before the market really resumes its uptrend through the end of the year. This is a great time to buy because history has shown the market tends to pull back around now during midterm election years. However, it only goes up from there, and there are a few reasons for that.

First, five weeks after September 30, we have Election Day on November 4. Midterm elections have a notoriously low turnout. This means that if we have gridlock in Washington now, we’ll likely have gridlock after midterm elections. As frustrating as gridlock is for many of us, this is a positive for the market. Wall Street typically likes gridlock because it allows business to go as usual without sudden and unexpected changes from regulators.

On top of this, in mid-October we’ll see the next round of third-quarter reports. Judging from the upward analyst earnings revisions following this earnings season, this will be another one for the record books. After that, the rest of the year will be full of the general optimism that comes hand-in-hand with the holiday season.

So if you’re really looking to take profits on any of your current positions, you’ll want to make sure that you’re only selling stocks that have become more volatile of late. You can do this at any time using my Portfolio Grader tool, and to get you started here’s a list of 21 big-name blue chips that should be sold right away:

Symbol Company Name Quantitative Grade Fundamental Grade Total Grade
BAC Bank of America Corp. D D D
CAG ConAgra Foods, Inc. D D D
CME CME Group Inc. D D D
CS Credit Suisse Group AG F F F
DB Deutsche Bank AG F D F
E Eni SpA D D D
ESV Ensco plc F D F
GM General Motors Company F D F
MAT Mattel, Inc. F D F
MOS Mosaic Company D D D
MSI Motorola Solutions, Inc. D D D
MUR Murphy Oil Corp. F D F
NMR Nomura Holdings, Inc. F D F
PXD Pioneer Natural Resources Co. D D D
SNE Sony Corp. F D F
TCK Teck Resources Limited F D F
TGT Target Corp. F D D
TLM Talisman Energy Inc. D D D
VIP VimpelCom Ltd. F D F


signed: Louis Navellier

Louis Navellier

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