Below we include statistics and the details of our three recent updates:
- October 13, 2020
Long Picks (October 7 open – October 13 close % change): CMS (+2.71%), RTX (+0.35%), EQIX (+4.46%), OKE (+8.35%), FB (+6.53%)
Short Picks (October 7 open – October 13 close % change): COP (+4.21%), TWTR (+2.02%), NVDA (+1.78%), AWK (+1.39%), FDX (+3.37%)
Average long result: +4.48%, average short result: -2.55%
Total profit (average): +0.96%
- October 6, 2020
Long Picks (September 30 open – October 6 close % change): SO (+7.13%), SEE (+9.80%), MAS (-2.17%), EOG (-1.23%), FB (-1.27%)
Short Picks (September 30 open – October 6 close % change): CVX (+0.07%), VZ (0.00%), MS (+0.15%), PPL (+5.90%), NEM (-2.67%)
Average long result: +2.45%, average short result: -0.69%
Total profit (average): +0.88%
- September 29, 2020
Long Picks (September 23 open – September 29 close % change): MLM (+4.25%), MAS (-0.88%), ROST (+0.03%), OXY (-10.24%), JNJ (-0.28%)
Short Picks (September 23 open – September 29 close % change): KMI (-3.26%), MCK (-1.92%), VZ (-0.99%), AMCR (-1.27%), IR (+1.82%)Average long result: -1.43%, average short result: +1.12%
Total profit (average): -0.15%
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, October 14 – Tuesday, October 20 period.
We will assume the following: the stocks will be bought or sold short on the opening of today’s trading session (October 14) and sold or bought back on the closing of the next Tuesday’s trading session (October 20).
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:
- buys: 1 x Technology, 1 x Utilities, 1 x Consumer Discretionary
- sells: 1 x Energy, 1 x Materials, 1 x Financials
Contrarian approach (betting against the recent trend):
- buys: 1 x Energy, 1 x Materials
- sells: 1 x Technology, 1 x Utilities
Top 3 Buy Candidates
CSCO Cisco Systems, Inc. – Technology
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