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Stock Pick Update: August 5 - August 11, 2020
August 5, 2020, 8:41 AMHeader: Which stocks could magnify S&P 500's gains in case it rallies? Take a look at a part of our Stock Pick Update. We have included Technology, Consumer Staples and Materials stocks this time.
The broad stock market has extended its medium-term uptrend in the last five trading days (July 29 - August 4). The S&P 500 index broke above its late July local highs along 3,280 level and it crossed the 3,300 mark. 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. But the index has rallied back closer to record high again. It is currently just 2.6% below the mentioned February's record high.
The S&P 500 index has gained 2.46% between July 29 and August 4. In the same period of time our five long and five short stock picks have gained 0.75%. So stock picks were relatively weaker than the broad stock market. Our long stock picks have gained 0.81% and short stock picks have resulted in a gain of 0.68%.
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 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% - July 21, 2020
Long Picks (July 15 open - July 21 close % change): DOW (-1.40%), INTC (+2.83%), MCD (-0.47%), XOM (-0.84%), HST (-1.54%)
Short Picks (July 15 open - July 21 close % change): COG (+4.57%), VNO (-5.52%), AON (+2.30%), LIN (+1.36%), AAPL (-2.01%)
Average long result: -0.28%, average short result: -0.14%
Total profit (average): -0.21%
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 5 - Tuesday, August 11 period.
We will assume the following: the stocks will be bought or sold short on the opening of today's trading session (August 5) and sold or bought back on the closing of the next Tuesday's trading session (August 11).
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 Staples, 1 x Materials
- sells: 1 x Energy, 1 x Real Estate, 1 x Financials
Contrarian approach (betting against the recent trend):
- buys: 1 x Energy, 1 x Real Estate
- sells: 1 x Technology, 1 x Consumer Staples
Trend-following approach
Top 3 Buy Candidates
V Visa Inc. - Technology
- Stock remains above two-month-long upward trend line
- Potential medium-term uptrend continuation
- The resistance level of $200
WBA Walgreens Boots Alliance, Inc. - Consumer Staples
- Potential short-term uptrend continuation pattern - bull flag
- The resistance level of $44 (short-term upside profit target)
- The support level remains at $38-39
ECL Ecolab, Inc. - Materials
- Stock remains above the support level of $185
- Potential medium-term bull flag pattern
- The resistance level and upside profit target level at $205-215
Summing up, the above trend-following long stock picks are just a part of our whole Stock Pick Update. The Technology, Consumer Staples 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 - August 4, 2020
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Stock Pick Update: July 29 - August 4, 2020
July 29, 2020, 9:05 AMThe broad stock market remained within a short-term consolidation in the last five trading days (July 22 - July 28). The S&P 500 index has retraced some of its recent advance after getting closer to 3,300 mark. 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. But the index has rallied back closer to record high again.
The S&P 500 index has lost 1.12% between July 22 and July 28. In the same period of time our five long and five short stock picks have lost 2.83%. Stock picks were relatively weaker than the broad stock market. Our long stock picks have lost 4.59% following a large INTC stock sell-off and short stock picks have resulted in a loss of 1.07%.
Could we have avoided such loss? Our 10-stock (5 long and 5 short) portfolio's weekly decline has been relatively large in the last five trading days. However, a 20% loss in one stock accounts for "only" 2% loss of 10-stock portfolio. 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:
- 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% - July 21, 2020
Long Picks (July 15 open - July 21 close % change): DOW (-1.40%), INTC (+2.83%), MCD (-0.47%), XOM (-0.84%), HST (-1.54%)
Short Picks (July 15 open - July 21 close % change): COG (+4.57%), VNO (-5.52%), AON (+2.30%), LIN (+1.36%), AAPL (-2.01%)
Average long result: -0.28%, average short result: -0.14%
Total profit (average): -0.21% - July 7, 2020
Long Picks (July 1 open - July 7 close % change): INTC (-2.67%), F (+0.33%), PPG (+2.17%), DTE (-0.35%), AIG (-5.93%)
Short Picks (July 1 open - July 7 close % change): XEL (+2.00%), BLK (+0.91%), EOG (-5.72%), MSFT (+2.52%), EBAY (+8.14%)
Average long result: -1.29%, average short result: -1.57%
Total profit (average): -1.43%
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, July 29 - Tuesday, August 4 period.
We will assume the following: the stocks will be bought or sold short on the opening of today's trading session (July 28) and sold or bought back on the closing of the next Tuesday's trading session (August 4).
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 Materials, 1 x Consumer Staples, 1 x Utilities
- sells: 1 x Energy, 1 x Technology, 1 x Financials
Contrarian approach (betting against the recent trend):
- buys: 1 x Energy, 1 x Technology
- sells: 1 x Materials, 1 x Consumer Staples
Trend-following approach
Top 3 Buy Candidates
IFF Intl Flavors & Fragrances - Materials
- Stock remains above the upward trend line
- Potential medium-term uptrend continuation
- The resistance level of $132.5-137.5
WBA Walgreens Boots Alliance, Inc. - Consumer Staples
- Potential short-term uptrend continuation pattern - bull flag
- The resistance level of $44 (short-term upside profit target)
- The support level remains at $38-39
ED Consolidated Edison, Inc. - Utilities
- Stock broke above medium-term downward trend line
- The resistance level and upside profit target level at $82-84
- The support level is at $70
Summing up, the above trend-following long stock picks are just a part of our whole Stock Pick Update. The Materials, Consumer Staples and Utilities 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 - July 28, 2020
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Stock Pick Update: July 22 - July 28, 2020
July 22, 2020, 8:50 AMThe broad stock market has extended its uptrend in the last five trading days (July 15 - July 21). The S&P 500 index broke above its early June local high and it got closer to 3,300 mark. More than three 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 have erased more than a third of the broad stock market value. Right now the index is just 4.01% below the record high.
The S&P 500 index has gained 0.97% between July 15 and July 21. In the same period of time our five long and five short stock picks have lost 0.21%. Stock picks were relatively weaker than the broad stock market. Our long stock picks have lost 0.28% and short stock picks have resulted in a loss of 0.14%. However, the overall results remain relatively better than the S&P 500 index over last months.
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:
- July 21, 2020
Long Picks (July 15 open - July 21 close % change): DOW (-1.40%), INTC (+2.83%), MCD (-0.47%), XOM (-0.84%), HST (-1.54%)
Short Picks (July 15 open - July 21 close % change): COG (+4.57%), VNO (-5.52%), AON (+2.30%), LIN (+1.36%), AAPL (-2.01%)
Average long result: -0.28%, average short result: -0.14%
Total profit (average): -0.21% - July 7, 2020
Long Picks (July 1 open - July 7 close % change): INTC (-2.67%), F (+0.33%), PPG (+2.17%), DTE (-0.35%), AIG (-5.93%)
Short Picks (July 1 open - July 7 close % change): XEL (+2.00%), BLK (+0.91%), EOG (-5.72%), MSFT (+2.52%), EBAY (+8.14%)
Average long result: -1.29%, average short result: -1.57%
Total profit (average): -1.43% - June 30, 2020
Long Picks (June 24 open - June 30 close % change): WY (+0.36%), CTSH (+3.76%), HIG (-0.57%), BSX (-2.39%), COP (-2.28%)
Short Picks (June 24 open - June 30 close % change): EW (-1.51%), WMB (0.00%), ETR (-0.27%), CCI (+2.04%), ADBE (-1.07%)
Average long result: -0.23%, average short result: +0.16%
Total profit (average): -0.04%
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, July 22 - Tuesday, July 28 period.
We will assume the following: the stocks will be bought or sold short on the opening of today's trading session (July 22) and sold or bought back on the closing of the next Tuesday's trading session (July 28).
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 Materials, 1 x Consumer Discretionary, 1 x Technology
- sells: 1 x Energy, 1 x Real Estate, 1 x Financials
Contrarian approach (betting against the recent trend):
- buys: 1 x Energy, 1 x Real Estate
- sells: 1 x Materials, 1 x Consumer Discretionary
Trend-following approach
Top 3 Buy Candidates
MLM Martin Marietta Materials - Materials
- Stock broke above the downward trend line
- Potential medium-term uptrend continuation
- The resistance level of $230
MCD McDonalds Corp. - Consumer Discretionary
- Stock broke above month-long downward trend line
- The resistance level of $200 (short-term upside profit target)
- The support level remains at $180
INTC Intel Corp. - Technology
- Stock remains above medium-term upward trend line
- The resistance level and upside profit target level at $65
- The support level is at $56-57
Summing up, the above trend-following long stock picks are just a part of our whole Stock Pick Update. The Materials, Consumer Discretionary and Technology 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 - July 21, 2020
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Stock Pick Update: July 15 - July 21, 2020
July 15, 2020, 8:20 AMThe broad stock market has been advancing between July 1 and July 7. The S&P 500 index got closer to its early June medium-term local highs again. More than three 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 have erased more than a third of the broad stock market value. Then we saw huge come-back rally, as the index got back above 3,200 mark.
The S&P 500 index has gained 1.27% between July 1 and July 7. In the same period of time our five long and five short stock picks have lost 1.43%. Stock picks were relatively weaker than the broad stock market. Our long stock picks have lost 1.29% and short stock picks have resulted in a loss of 1.57%. However, the overall results remain relatively better than the S&P 500 index over last months.
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:
- July 7, 2020
Long Picks (July 1 open - July 7 close % change): INTC (-2.67%), F (+0.33%), PPG (+2.17%), DTE (-0.35%), AIG (-5.93%)
Short Picks (July 1 open - July 7 close % change): XEL (+2.00%), BLK (+0.91%), EOG (-5.72%), MSFT (+2.52%), EBAY (+8.14%)
Average long result: -1.29%, average short result: -1.57%
Total profit (average): -1.43% - June 30, 2020
Long Picks (June 24 open - June 30 close % change): WY (+0.36%), CTSH (+3.76%), HIG (-0.57%), BSX (-2.39%), COP (-2.28%)
Short Picks (June 24 open - June 30 close % change): EW (-1.51%), WMB (0.00%), ETR (-0.27%), CCI (+2.04%), ADBE (-1.07%)
Average long result: -0.23%, average short result: +0.16%
Total profit (average): -0.04% - June 23, 2020
Long Picks (June 17 open - June 23 close % change): BA (-3.41%), DLR (-0.81%), WLTW (+1.27%), BMY (+2.05%), HSY (-2.03%)
Short Picks (June 17 open - June 23 close % change): DHR (-0.23%), CLX (+1.76%), AEP (-1.58%), MMM (-1.47%), PLD (-6.67%)
Average long result: -0.58%, average short result: +1.64%
Total profit (average): +0.53%
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, July 15 - Tuesday, July 21 period.
We will assume the following: the stocks will be bought or sold short on the opening of today's trading session (July 15) and sold or bought back on the closing of the next Tuesday's trading session (July 21).
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 Materials, 1 x Technology, 1 x Consumer Discretionary
- sells: 1 x Energy, 1 x Real Estate, 1 x Financials
Contrarian approach (betting against the recent trend):
- buys: 1 x Energy, 1 x Real Estate
- sells: 1 x Materials, 1 x Technology
Trend-following approach
Top 3 Buy Candidates
DOW Dow Holdings Inc. - Materials
- Stock broke above over month-long downward trend line
- Potential medium-term uptrend continuation
- The resistance level of $46 (short-term upside profit target level)
INTC Intel Corp. - Technology
- Stock remains above medium-term upward trend line
- The resistance level and upside profit target level at $61-65
- The support level is at $56
MCD McDonalds Corp. - Consumer Discretionary
- Stock broke above downward trend line
- The resistance level of $200 (short-term upside profit target)
- The support level remains at $180
Summing up, the above trend-following long stock picks are just a part of our whole Stock Pick Update. The Materials, Technology 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 - July 7, 2020
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Stock Pick Update: Administrative Notice
July 8, 2020, 3:16 AMThere won't be Stock Pick Update today due to vacation plans. We apologize for inconvenience. The regular Stock Pick Update along with last week's SPU's results will be back next week on Wednesday.
Thank you.
Paul Rejczak
Stock Trading Strategist
Sunshine Profits - Effective Investments through Diligence and Care
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