Stock Pick Update: November 11 – November 17, 2020 – FX Empire

This post was originally published on this site

Below we include statistics and the details of our three recent updates:

  • November 10, 2020

Long Picks (November 4 open – November 10 close % change): PEG (+2.17%), IFF (+4.81%), LMT (+0.06%), CSCO (+4.56%), PHM (-4.68%)
Short Picks (November 4 open – November 10 close % change): ADI (+10.12%), APTV (+7.60%), CBRE (+9.51%), WEC (+1.03%), FMC (+1.98%)

Average long result: +1.39%, average short result: -6.05%
Total profit (average): -2.33%

  • November 3, 2020

Long Picks (October 28 open – November 3 close % change): D (+2.09%), FB (-4.84%), WYNN (+5.46%), BKR (+15.24%), ARE (+1.53%)
Short Picks (October 28 open – November 3 close % change): PXD (+1.27%), DRE (+8.66%), ITW (+7.09%), CMS (+0.72%), CMCSA (-0.63%)

Average long result: +3.90%, average short result: -3.42%
Total profit (average): +0.24%

  • October 27, 2020

Long Picks (October 21 open – October 27 close % change): PPL (+1.96%), WDC (-3.40%), WYNN (-0.25%), XOM (-2.06%), LIN (-3.02%)
Short Picks (October 21 open – October 27 close % change): WMB (-1.12%), SHW (-0.23%), TROW (-2.61%), WEC (+1.63%), NVDA (-1.68%)

Average long result: -1.35%, average short result: +0.80%
Total profit (average): -0.27%

Let’s check which stocks could magnify S&P’s gains in case it rallies, and which stocks would be likely to decline the most if S&P plunges. Here are our stock picks for the Wednesday, November 11 – Tuesday, November 17 period.

We will assume the following: the stocks will be bought or sold short on the opening of today’s trading session (November 11) and sold or bought back on the closing of the next Tuesday’s trading session (November 17).

We will provide stock trading ideas based on our in-depth technical and fundamental analysis, but since the main point of this publication is to provide the top 5 long and top 5 short candidates (our opinion, not an investment advice) for this week, we will focus solely on the technicals. The latter are simply more useful in case of short-term trades.

First, we will take a look at the recent performance by sector. It may show us which sector is likely to perform best in the near future and which sector is likely to lag. Then, we will select our buy and sell stock picks.

There are eleven stock market sectors: Energy, Materials, Industrials, Consumer Discretionary, Consumer Staples, Health Care, Financials, Technology, Communications Services, Utilities and Real Estate. They are further divided into industries, but we will just stick with these main sectors of the stock market.

We will analyze them and their relative performance by looking at the Select Sector SPDR ETF’s .

Based on the above, we decided to choose our stock picks for the next week. We will choose our top 3 long and top 3 short candidates using trend-following approach, and top 2 long and top 2 short candidates using contrarian approach:

Trend-following approach:

  • buys: 1 x Energy, 1 x Financials, 1 x Materials
  • sells: 1 x Real Estate, 1 x Consumer Discretionary, 1 x Technology

Contrarian approach (betting against the recent trend):

  • buys: 1 x Real Estate, 1 x Consumer Discretionary
  • sells: 1 x Energy, 1 x Financials

Trend-following approach

Top 3 Buy Candidates

KMI Kinder Morgan Inc. – Energy

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