FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
43,096,130Confirmed
1,156,521Deaths
31,748,203Recovered
Fetching Location Data…
Advertisement
Advertisement
Paul Rejczak
S&P 500

The broad stock market has accelerated its uptrend in the last five trading days (June 3 – June 9). More than two months ago on March 23, the S&P 500 index 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. However, the index remains 5.8% below the mentioned record high.

The S&P 500 index has gained 3.49% since last Wednesday’s open. In the same period of time our five long and five short stock picks have gained 0.84%. Stock picks were relatively weaker than the broad stock market last week. Our long stock picks have gained 3.68%, so they have been relatively stronger than the S&P 500 index. However, short stock picks have resulted in a loss of 2.01%. 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:

  • June 2, 2020
    Long Picks (June 3 open – June 9 close % change): VMC (+5.25%), DISCK (+7.87%), HAS (+6.62%), HSY (-2.90%), MRK (+1.56%)
    Short Picks (June 3 open – June 9 close % change): MNST (-3.00%), ABBV (+5.14%), EQIX (-0.07%), ECL (+5.14%), FB (+2.83%)Average long result: +3.68%, average short result: -2.01%
    Total profit (average): +0.84%
  • June 2, 2020
    Long Picks (May 27 open – June 2 close % change): OXY (+0.34%), DISCK (-1.60%), HAS (-0.39%), PPL (+8.41%), SYY (+1.14%)
    Short Picks (May 27 open – June 2 close % change): AEP (+6.10%), CAG (+4.84%), ABBV (+0.55%), COP (-0.32%), FB (+1.59%)Average long result: +1.58%, average short result: -2.55%
    Total profit (average): -0.49%
  • May 26, 2020
    Long Picks (May 20 open – May 26 close % change): SLB (+5.32%), TWTR (+11.51%), CSCO (-0.47%), SPG (+1.13%), DTE (+1.06%)
    Short Picks (May 20 open – May 26 close % change): AMT (+5.15%), SO (+0.87%), K (-0.34%), HES (+3.07%), NFLX (-8.69%)Average long result: +3.71%, average short result: -0.01%
    Total profit (average): +1.85%

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, June 10 – Tuesday, June 16 period.

We will assume the following: the stocks will be bought or sold short on the opening of today’s trading session (June 10) and sold or bought back on the closing of the next Tuesday’s trading session (June 16).

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 Industrials, 1 x Financials
  • sells: 1 x Health Care, 1 x Consumer Staples, 1 x Technology

Contrarian approach (betting against the recent trend):

  • buys: 1 x Health Care, 1 x Consumer Staples
  • sells: 1 x Energy, 1 x Industrials

Trend-following approach

Top 3 Buy Candidates

SLB Schlumberger Ltd. – Energy

  • Stock trades within a consolidation following breaking higher
  • Potential short-term uptrend continuation/ further acceleration
  • The resistance level of $28 (upside profit target level)

IEX Idex Corp. – Industrials

  • Stock trades along its upward trend line
  • Upside profit target level of $170-175 (the resistance level)
  • The support level remains at $150-160

L Loews Corp. – Financials

  • The market trades along upward trend line
  • The resistance levels of $44 (upside profit target)
  • The support level remains at $26

Summing up, the above trend-following long stock picks are just a part of our whole Stock Pick Update. The Energy, Industrials and Financials sectors were relatively the strongest in the last 30 days. And they all have gained much more than the S&P 500 index in the same period. 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.

For a look at all of today’s economic events, check out our economic calendar.

Thank you.

Paul Rejczak
Stock Trading Strategist
Sunshine Profits – Effective Investments through Diligence and Care

* * * * *

Disclaimer

All essays, research and information found above represent analyses and opinions of Paul Rejczak and Sunshine Profits’ associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Paul Rejczak and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Rejczak is not a Registered Securities Advisor. By reading Paul Rejczak’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Paul Rejczak, Sunshine Profits’ employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

 

Advertisement
Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US