CNBC Stock Blog

Stock Picker: Ride the Rebound — and Sell in July

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We’re "long overall" and believe that the market has a lot of room to go higher, said Wayne Kaufman, chief market analyst at John Thomas Financial. (See below for his stock and sector recommendations.)

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Riding the Recession Rebound

“The average move on the first year of a presidential cycle takes stocks up into July so we think that this year, it’s really following that average,” Kaufman told CNBC.

“There’s sometimes is a pause in May—but we’re looking for a further upside into July.”

“So for the 'sell in May and go away' crowd, we really think it’s more like: 'sell sometime in June or in early July,'” he said.

Recommendations:

Stocks:

Apple

Sociedad Quimica y Minera De Chile (aka Chemical & Mining Co. of Chile) 

Morgan Stanley

Prudential Financial

Yanzhou Coal Mining

Sectors:

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Energy

Information technology

Materials

Industrials

Financials

“The key issue right now is that there’s a lack of sellers,” he said. “Even though volume is a little light, if there are no sellers out there, the tail wind is to the upside and that’s what the charts are saying.”

Disclosure:

Kaufman does not own any shares from any of the companies above, but has investment banking clients who own shares of Apple, Sociedad, Morgan Stanley, Prudential and Yanzhou Coal Mining.

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