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Stock Pick Update: September 9 - September 15, 2020
September 9, 2020, 7:54 AMIn the last four trading days (September 2 - September 8) the broad stock market has retraced its month-long advance. The S&P 500 index set new record high of 3,588.11 on Wednesday, September 2. But then the market sold off by more than 250 points and it fell below February 19 high of 3,393.52 again. Five months ago on March 23, S&P 500 sold off to new medium-term low of 2,191.86. It was a stunning 35.4% below February 19 record high of 3,393.52. The corona virus and economic slowdown fears erased more than a third of the broad stock market value. But since then stocks rallied 63.7%. Last week's decline is a downward correction so far.
The S&P 500 index has lost 5.98% between September 2 and September 8. In the same period of time our five long and five short stock picks have gained 1.78%. So stock picks were relatively much stronger than the broad stock market. Our long stock picks have lost 1.99% but short stock picks have resulted in a gain of 5.54%.
There are risks that couldn't be avoided in trading. Hence the need for proper money management and a relatively diversified stock portfolio. This is especially important if trading on a time basis - without using stop-loss/ profit target levels. We are just buying or selling stocks at open on Wednesday and selling or buying them back at close on the next Tuesday.
If stocks were in a prolonged downtrend, being able to profit anyway, would be extremely valuable. Of course, it's not the point of our Stock Pick Updates to forecast where the general stock market is likely to move, but rather to provide you with stocks that are likely to generate profits regardless of what the S&P does.
This means that our overall stock-picking performance can be summarized on the chart below. The assumptions are: starting with $100k, no leverage used. The data before Dec 24, 2019 comes from our internal tests and data after that can be verified by individual Stock Pick Updates posted on our website.
Below we include statistics and the details of our three recent updates:
- September 8, 2020
Long Picks (September 2 open - September 8 close % change): CSCO (-4.85%), DIS (+0.43%), MAR (+0.68%), WEC (+2.00%), PXD (-8.20%)
Short Picks (September 2 open - September 8 close % change): SO (+2.09%), PSX (-1.08%), PEAK (-0.47%), NVDA (-18.98%), FB (-9.27%)
Average long result: -1.99%, average short result: +5.54%
Total profit (average): +1.78% - September 1, 2020
Long Picks (August 26 open - September 1 close % change): FIS (+4.53%), MAR (+4.82%), DISH (+1.59%), PXD (-2.85%), WEC (+2.02%)
Short Picks (August 26 open - September 1 close % change): PSX (-4.28%), D (-0.35%), ANTM (-1.31%), AAPL (+6.34%), HD (-0.62%)
Average long result: +2.02%, average short result: +0.04%
Total profit (average): +1.03% - August 25, 2020
Long Picks (August 19 open - August 25 close % change): VFC (+3.87%), IBM (-0.15%), CAT (+1.91%), CVX (-1.34%), SCHW (+1.72%)
Short Picks (August 19 open - August 25 close % change): WMB (-2.11%), TROW (-1.15%), XEL (-1.84%), HD (-0.46%), AAPL (+7.62%)
Average long result: +1.20%, average short result: -0.41%
Total profit (average): +0.40%
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, September 9 - Tuesday, September 15 period.
We will assume the following: the stocks will be bought or sold short on the opening of today's trading session (September 9) and sold or bought back on the closing of the next Tuesday's trading session (September 15).
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.
The stock market sector analysis is available to our subscribers only.
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 Consumer Discretionary, 1 x Industrials, 1 x Materials
- sells: 1 x Energy, 1 x Technology, 1 x Utilities
Contrarian approach (betting against the recent trend):
- buys: 1 x Energy, 1 x Technology
- sells: 1 x Consumer Discretionary, 1 x Industrials
Trend-following approach
Top 3 Buy Candidates
UAA Under Armour, Inc. - Consumer Discretionary
- Stock broke above month-long downward trend line
- The resistance level of $11.5-12.5
- The support level is at $9.5-10.0
EFX Equifax, Inc. - Industrials
- Stock remains within a medium-term consolidation
- Possible uptrend continuation
- The resistance level of $180
- The support level is at $160
CF CF Industries Holdings, Inc. - Materials
- Stock trades within a bull flag pattern - uptrend continuation play
- The resistance level and a short-term upside profit target level is at $35-36, marked by previous high
Summing up, the above trend-following long stock picks are just a part of our whole Stock Pick Update. The Consumer Discretionary, Industrials and Materials sectors were relatively the strongest in the last 30 days. So that part of our ten long and short stock picks is meant to outperform in the coming days if the broad stock market acts similarly as it did before.
We hope you enjoyed reading the above free analysis, and we encourage you to read today's Stock Pick Update - this analysis' full version. There, we include the stock market sector analysis for the past month and remaining long and short stock picks for the next week. There's no risk in subscribing right away, because there's a 30-day money back guarantee for all our products, so we encourage you to subscribe today.
Thank you.
Paul Rejczak
Stock Trading Strategist
Sunshine Profits - Effective Investments through Diligence and Care - September 8, 2020
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Stock Pick Update: September 2 - September 8, 2020
September 2, 2020, 6:57 AMThe broad stock market has extended its medium-term uptrend in the last five trading days (August 26 - September 1). The S&P 500 index has set new record high of 3,528.03 on Tuesday, as it further extended its rally after breaking above February 19 high of 3,393.52. Five months ago on March 23, the market sold off to new medium-term low of 2,191.86. It was a stunning 35.4% below February 19 record high of 3,393.52. The corona virus and economic slowdown fears erased more than a third of the broad stock market value. But since then stocks rallied 61.0%.
The S&P 500 index has gained 2.22% between August 26 and September 1. In the same period of time our five long and five short stock picks have gained 1.03%. So stock picks were relatively weaker than the broad stock market. Our long stock picks have gained 2.02% and short stock picks have resulted in a small gain of 0.04%.
There are risks that couldn't be avoided in trading. Hence the need for proper money management and a relatively diversified stock portfolio. This is especially important if trading on a time basis - without using stop-loss/ profit target levels. We are just buying or selling stocks at open on Wednesday and selling or buying them back at close on the next Tuesday.
If stocks were in a prolonged downtrend, being able to profit anyway, would be extremely valuable. Of course, it's not the point of our Stock Pick Updates to forecast where the general stock market is likely to move, but rather to provide you with stocks that are likely to generate profits regardless of what the S&P does.
This means that our overall stock-picking performance can be summarized on the chart below. The assumptions are: starting with $100k, no leverage used. The data before Dec 24, 2019 comes from our internal tests and data after that can be verified by individual Stock Pick Updates posted on our website.
Below we include statistics and the details of our three recent updates:
- September 1, 2020
Long Picks (August 26 open - September 1 close % change): FIS (+4.53%), MAR (+4.82%), DISH (+1.59%), PXD (-2.85%), WEC (+2.02%)
Short Picks (August 26 open - September 1 close % change): PSX (-4.28%), D (-0.35%), ANTM (-1.31%), AAPL (+6.34%), HD (-0.62%)
Average long result: +2.02%, average short result: +0.04%
Total profit (average): +1.03% - August 25, 2020
Long Picks (August 19 open - August 25 close % change): VFC (+3.87%), IBM (-0.15%), CAT (+1.91%), CVX (-1.34%), SCHW (+1.72%)
Short Picks (August 19 open - August 25 close % change): WMB (-2.11%), TROW (-1.15%), XEL (-1.84%), HD (-0.46%), AAPL (+7.62%)
Average long result: +1.20%, average short result: -0.41%
Total profit (average): +0.40% - August 18, 2020
Long Picks (August 12 open - August 18 close % change): BA (-7.49%), SCHW (-1.55%), CXO (-4.91%), BXP (-5.58%), MSI (+5.14%)
Short Picks (August 12 open - August 18 close % change): CCI (+1.85%), AAPL (+4.58%), CHTR (+3.33%), ROP (+0.48%), SPGI (+3.65%)
Average long result: -2.88%, average short result: -2.78%
Total profit (average): -2.83%
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, September 2 - Tuesday, September 8 period.
We will assume the following: the stocks will be bought or sold short on the opening of today's trading session (September 2) and sold or bought back on the closing of the next Tuesday's trading session (September 8).
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.
The stock market sector analysis is available to our subscribers only.
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 Technology, 1 x Communication Services, 1 x Consumer Discretionary
- sells: 1 x Utilities, 1 x Energy, 1 x Real Estate
Contrarian approach (betting against the recent trend):
- buys: 1 x Utilities, 1 x Energy
- sells: 1 x Technology, 1 x Communication Services
Trend-following approach
Top 3 Buy Candidates
CSCO Cisco Systems, Inc. - Technology
- Possible short-term bottoming pattern along $42
- The resistance level of $45
- The support level is at $40
DIS Walt Disney Co. - Communication Services
- Stock remains above month-long upward trend line
- Possible uptrend continuation
- The resistance level of $135.0
- The support level is at $127.5
MAR Marriott Intl Inc New - Consumer Discretionary
- Stock fluctuates after breaking above short-term downward trend line
- The resistance level and an upside profit target level is at $115, marked by previous high
Summing up, the above trend-following long stock picks are just a part of our whole Stock Pick Update. The Technology, Communication Services and Consumer Discretionary sectors were relatively the strongest in the last 30 days. So that part of our ten long and short stock picks is meant to outperform in the coming days if the broad stock market acts similarly as it did before.
We hope you enjoyed reading the above free analysis, and we encourage you to read today's Stock Pick Update - this analysis' full version. There, we include the stock market sector analysis for the past month and remaining long and short stock picks for the next week. There's no risk in subscribing right away, because there's a 30-day money back guarantee for all our products, so we encourage you to subscribe today.
Thank you.
Paul Rejczak
Stock Trading Strategist
Sunshine Profits - Effective Investments through Diligence and Care - September 1, 2020
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Stock Pick Update: August 26 - September 1, 2020
August 26, 2020, 8:25 AMThe broad stock market has extended its medium-term uptrend in the last five trading days (August 19 - August 25). The S&P 500 index has set new record high of 3,444.21 on Tuesday, as it further extended its rally after breaking above February 19 high of 3,393.52. Five months ago on March 23, the market sold off to new medium-term low of 2,191.86. It was a stunning 35.4% below February 19 record high of 3,393.52. The corona virus and economic slowdown fears erased more than a third of the broad stock market value. But since then stocks rallied 57.1%.
The S&P 500 index has gained 1.51% between August 19 and August 25. In the same period of time our five long and five short stock picks have gained 0.40%. So stock picks were relatively weaker than the broad stock market. Our long stock picks have gained 1.20% and short stock picks have resulted in a loss of 0.41%.
There are risks that couldn't be avoided in trading. Hence the need for proper money management and a relatively diversified stock portfolio. This is especially important if trading on a time basis - without using stop-loss/ profit target levels. We are just buying or selling stocks at open on Wednesday and selling or buying them back at close on the next Tuesday.
If stocks were in a prolonged downtrend, being able to profit anyway, would be extremely valuable. Of course, it's not the point of our Stock Pick Updates to forecast where the general stock market is likely to move, but rather to provide you with stocks that are likely to generate profits regardless of what the S&P does.
This means that our overall stock-picking performance can be summarized on the chart below. The assumptions are: starting with $100k, no leverage used. The data before Dec 24, 2019 comes from our internal tests and data after that can be verified by individual Stock Pick Updates posted on our website.
Below we include statistics and the details of our three recent updates:
- August 25, 2020
Long Picks (August 19 open - August 25 close % change): VFC (+3.87%), IBM (-0.15%), CAT (+1.91%), CVX (-1.34%), SCHW (+1.72%)
Short Picks (August 19 open - August 25 close % change): WMB (-2.11%), TROW (-1.15%), XEL (-1.84%), HD (-0.46%), AAPL (+7.62%)
Average long result: +1.20%, average short result: -0.41%
Total profit (average): +0.40% - August 18, 2020
Long Picks (August 12 open - August 18 close % change): BA (-7.49%), SCHW (-1.55%), CXO (-4.91%), BXP (-5.58%), MSI (+5.14%)
Short Picks (August 12 open - August 18 close % change): CCI (+1.85%), AAPL (+4.58%), CHTR (+3.33%), ROP (+0.48%), SPGI (+3.65%)
Average long result: -2.88%, average short result: -2.78%
Total profit (average): -2.83% - August 11, 2020
Long Picks (August 5 open - August 11 close % change): V (+2.18%), WBA (+2.45%), ECL (+3.13%), XOM (+1.86%), PSA (-1.38%)
Short Picks (August 5 open - August 11 close % change): COP (+3.14%), CCI (-2.75%), SPGI (-0.95%), PYPL (-5.01%), K (-2.35%)
Average long result: +1.65%, average short result: +1.59%
Total profit (average): +1.62%
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, August 26 - Tuesday, September 1 period.
We will assume the following: the stocks will be bought or sold short on the opening of today's trading session (August 26) and sold or bought back on the closing of the next Tuesday's trading session (September 1).
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.
The stock market sector analysis is available to our subscribers only.
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 Technology, 1 x Consumer Discretionary, 1 x Communication Services
- sells: 1 x Energy, 1 x Utilities, 1 x Health Care
Contrarian approach (betting against the recent trend):
- buys: 1 x Energy, 1 x Utilities
- sells: 1 x Technology, 1 x Consumer Discretionary
Trend-following approach
Top 3 Buy Candidates
FIS Fidelity National Information Services, Inc. - Technology
- Stock broke above its downward trend line
- The next resistance level of $150
- The support level is at $140
MAR Marriott Intl Inc New - Consumer Discretionary
- Stock broke above short-term downward trend line
- Possible uptrend resuming
- The resistance level of $115 (short-term upside profit target)
- The support level is at $80-85
DISH DISH Network Corp. - Communication Services
- Stock remains above its two-month-long upward trend line
- The resistance level and a short-term upside profit target level is at $37
Summing up, the above trend-following long stock picks are just a part of our whole Stock Pick Update. The Technology, Consumer Discretionary and Communication Services sectors were relatively the strongest in the last 30 days. So that part of our ten long and short stock picks is meant to outperform in the coming days if the broad stock market acts similarly as it did before.
We hope you enjoyed reading the above free analysis, and we encourage you to read today's Stock Pick Update - this analysis' full version. There, we include the stock market sector analysis for the past month and remaining long and short stock picks for the next week. There's no risk in subscribing right away, because there's a 30-day money back guarantee for all our products, so we encourage you to subscribe today.
Thank you.
Paul Rejczak
Stock Trading Strategist
Sunshine Profits - Effective Investments through Diligence and Care - August 25, 2020
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Stock Pick Update: August 19 - August 25, 2020
August 19, 2020, 7:16 AMThe broad stock market has further extended its medium-term uptrend in the last five trading days (August 12 - August 18). The S&P 500 index has set new record high of 3,395.06 on Tuesday, as it got slightly above February 19 high of 3,393.52. More than four months ago on March 23, the market sold off to new medium-term low of 2,191.86. It was a stunning 35.4% below February 19 record high of 3,393.52. The corona virus and economic slowdown fears erased more than a third of the broad stock market value. Since then stocks rallied 54.9%.
The S&P 500 index has gained 1.02% between August 12 and August 18. In the same period of time our five long and five short stock picks have lost 2.83%. So stock picks were relatively weaker than the broad stock market. Our long stock picks have lost 2.88% and short stock picks have resulted in a loss of 2.78%.
There are risks that couldn't be avoided in trading. Hence the need for proper money management and a relatively diversified stock portfolio. This is especially important if trading on a time basis - without using stop-loss/ profit target levels. We are just buying or selling stocks at open on Wednesday and selling or buying them back at close on the next Tuesday.
If stocks were in a prolonged downtrend, being able to profit anyway, would be extremely valuable. Of course, it's not the point of our Stock Pick Updates to forecast where the general stock market is likely to move, but rather to provide you with stocks that are likely to generate profits regardless of what the S&P does.
This means that our overall stock-picking performance can be summarized on the chart below. The assumptions are: starting with $100k, no leverage used. The data before Dec 24, 2019 comes from our internal tests and data after that can be verified by individual Stock Pick Updates posted on our website.
Below we include statistics and the details of our three recent updates:
- August 18, 2020
Long Picks (August 12 open - August 18 close % change): BA (-7.49%), SCHW (-1.55%), CXO (-4.91%), BXP (-5.58%), MSI (+5.14%)
Short Picks (August 12 open - August 18 close % change): CCI (+1.85%), AAPL (+4.58%), CHTR (+3.33%), ROP (+0.48%), SPGI (+3.65%)
Average long result: -2.88%, average short result: -2.78%
Total profit (average): -2.83% - August 11, 2020
Long Picks (August 5 open - August 11 close % change): V (+2.18%), WBA (+2.45%), ECL (+3.13%), XOM (+1.86%), PSA (-1.38%)
Short Picks (August 5 open - August 11 close % change): COP (+3.14%), CCI (-2.75%), SPGI (-0.95%), PYPL (-5.01%), K (-2.35%)
Average long result: +1.65%, average short result: +1.59%
Total profit (average): +1.62% - August 4, 2020
Long Picks (July 29 open - August 4 close % change): IFF (-2.27%), WBA (+0.24%), ED (-0.50%), XOM (-0.55%), WU (+7.13%)
Short Picks (July 29 open - August 4 close % change): HES (+1.34%), XLNX (+2.30%), SPGI (-0.71%), APD (-3.33%), KO (-3.01%)
Average long result: +0.81%, average short result: +0.68%
Total profit (average): +0.75%
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, August 19 - Tuesday, August 25 period.
We will assume the following: the stocks will be bought or sold short on the opening of today's trading session (August 19) and sold or bought back on the closing of the next Tuesday's trading session (August 25).
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.
The stock market sector analysis is available to our subscribers only.
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 Consumer Discretionary, 1 x Technology, 1 x Industrials
- sells: 1 x Energy, 1 x Financials, 1 x Utilities
Contrarian approach (betting against the recent trend):
- buys: 1 x Energy, 1 x Financials
- sells: 1 x Consumer Discretionary, 1 x Technology
Trend-following approach
Top 3 Buy Candidates
VFC VFCorp - Consumer Discretionary
- Possible uptrend continuation after breaking above $62 in the first half of the month
- The next resistance level of $66
- Stock continues to trade above medium-term upward trend line
IBM International Business Machines - Technology
- Stock remains above two-month-long upward trend line
- Possible uptrend continuation
- The resistance level of $130 (short-term upside profit target)
- The support level is at $120
CAT Caterpillar, Inc. - Industrials
- Stock remains above its medium-term upward trend line
- The resistance level and upside profit target level is at $145
Summing up, the above trend-following long stock picks are just a part of our whole Stock Pick Update. The Consumer Discretionary, Technology and Industrials sectors were relatively the strongest in the last 30 days. So that part of our ten long and short stock picks is meant to outperform in the coming days if the broad stock market acts similarly as it did before.
We hope you enjoyed reading the above free analysis, and we encourage you to read today's Stock Pick Update - this analysis' full version. There, we include the stock market sector analysis for the past month and remaining long and short stock picks for the next week. There's no risk in subscribing right away, because there's a 30-day money back guarantee for all our products, so we encourage you to subscribe today.
Thank you.
Paul Rejczak
Stock Trading Strategist
Sunshine Profits - Effective Investments through Diligence and Care - August 18, 2020
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Stock Pick Update: August 12 - August 18, 2020
August 12, 2020, 7:49 AMThe broad stock market has extended its medium-term uptrend in the last five trading days (August 5 - August 11). The S&P 500 index got closer to its February 19 record high of 3,393.52 on Tuesday, August 11 as the daily high reached 3,381.01. But the index reversed lower and closed 0.8% below Monday's closing price yesterday.
More than four months ago on March 23, the market sold off to new medium-term low of 2,191.86. It was a stunning 35.4% below February 19 record high of 3,393.52. The corona virus and economic slowdown fears erased more than a third of the broad stock market value. Since then stocks rallied 54.3%.
The S&P 500 index has gained just 0.49% between August 5 and August 11. In the same period of time our five long and five short stock picks have gained 1.62%. So stock picks were relatively stronger than the broad stock market. Our long stock picks have gained 1.65% and short stock picks have resulted in a gain of 1.59%.
There are risks that couldn't be avoided in trading. Hence the need for proper money management and a relatively diversified stock portfolio. This is especially important if trading on a time basis - without using stop-loss/ profit target levels. We are just buying or selling stocks at open on Wednesday and selling or buying them back at close on the next Tuesday.
If stocks were in a prolonged downtrend, being able to profit anyway, would be extremely valuable. Of course, it's not the point of our Stock Pick Updates to forecast where the general stock market is likely to move, but rather to provide you with stocks that are likely to generate profits regardless of what the S&P does.
This means that our overall stock-picking performance can be summarized on the chart below. The assumptions are: starting with $100k, no leverage used. The data before Dec 24, 2019 comes from our internal tests and data after that can be verified by individual Stock Pick Updates posted on our website.
Below we include statistics and the details of our three recent updates:
- August 11, 2020
Long Picks (August 5 open - August 11 close % change): V (+2.18%), WBA (+2.45%), ECL (+3.13%), XOM (+1.86%), PSA (-1.38%)
Short Picks (August 5 open - August 11 close % change): COP (+3.14%), CCI (-2.75%), SPGI (-0.95%), PYPL (-5.01%), K (-2.35%)
Average long result: +1.65%, average short result: +1.59%
Total profit (average): +1.62% - August 4, 2020
Long Picks (July 29 open - August 4 close % change): IFF (-2.27%), WBA (+0.24%), ED (-0.50%), XOM (-0.55%), WU (+7.13%)
Short Picks (July 29 open - August 4 close % change): HES (+1.34%), XLNX (+2.30%), SPGI (-0.71%), APD (-3.33%), KO (-3.01%)
Average long result: +0.81%, average short result: +0.68%
Total profit (average): +0.75% - July 28, 2020
Long Picks (July 22 open - July 28 close % change): MLM (-5.87%), MCD (+1.57%), INTC (-19.84%), XOM (-1.36%), IRM (+2.58%)
Short Picks (July 22 open - July 28 close % change): COG (-0.38%), WY (+6.86%), SPGI (-1.77%), APD (-0.40%), HD (+1.02%)
Average long result: -4.59%, average short result: -1.07%
Total profit (average): -2.83%
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, August 12 - Tuesday, August 18 period.
We will assume the following: the stocks will be bought or sold short on the opening of today's trading session (August 12) and sold or bought back on the closing of the next Tuesday's trading session (August 18).
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.
The stock market sector analysis is available to our subscribers only.
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 Industrials, 1 x Financials, 1 x Energy
- sells: 1 x Real Estate, 1 x Technology, 1 x Communication Services
Contrarian approach (betting against the recent trend):
- buys: 1 x Real Estate, 1 x Technology
- sells: 1 x Industrials, 1 x Financials
Trend-following approach
Top 3 Buy Candidates
BA Boeing Co. - Industrials
- Stock broke above two-month-long downward trend line
- Potential medium-term uptrend continuation
- The resistance level of $200-240
SCHW Charles Schwab Corp. - Financials
- Potential short-term uptrend continuation after breaking above downward trend line
- The resistance level of $36-38 (short-term upside profit target)
- The support level is at $33
CXO Concho Resources Inc. - Energy
- Stock remains above the previously broken downward trend line
- The resistance level and an initial upside profit target level is at $60
Summing up, the above trend-following long stock picks are just a part of our whole Stock Pick Update. The Industrials, Financials and Energy sectors were relatively the strongest in the last 30 days. So that part of our ten long and short stock picks is meant to outperform in the coming days if the broad stock market acts similarly as it did before.
We hope you enjoyed reading the above free analysis, and we encourage you to read today's Stock Pick Update - this analysis' full version. There, we include the stock market sector analysis for the past month and remaining long and short stock picks for the next week. There's no risk in subscribing right away, because there's a 30-day money back guarantee for all our products, so we encourage you to subscribe today.
Thank you.
Paul Rejczak
Stock Trading Strategist
Sunshine Profits - Effective Investments through Diligence and Care - August 11, 2020
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