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Stock Pick Updates

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All 10 carefully selected each week by Paul Rejczak based on two separate techniques for improved diversification. One technique focuses on choosing the best of the most promising sectors, and the other aims to find the stocks that showed most resilience despite being a part of a lagging sector. Both approaches are applied to many sectors and then all stock candidates are reviewed manually, before making it (or not) to our weekly list.

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  • Stock Pick Update: February 12 - February 18, 2020

    February 12, 2020, 8:34 AM

    Let's check which stock 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, February 12 - Tuesday, February 18 period.

    The Stock Pick Update for the Wednesday, February 5 - Tuesday, February 11, 2020 period resulted in a gain of 0.36%. The S&P 500 index has gained 0.99% in the same period. So our stock picks were relatively slightly weaker than the broad stock market. However, both our long stock picks and short stock picks were profitable. Just imagine what long-term advantage we would have when stocks enter a more prolonged downward correction!

    Below we include statistics and the details of the previous updates. Only the updates for week-long periods since December 24 are verified by the alert's release on our website, but before we decided to make it available to you, we tested our approach and our stock picks performed very well:

    • Feb 11, 2020
      Long Picks (Feb 5 open - Feb 11 close % change): PSX (-0.11%), MS (+1.68%), DD (-1.09%), PEG (-1.98%), NTAP (+3.59%)
      Short Picks (Feb 5 open - Feb 11 close % change): ETR (+1.93%), NOW (-2.72%), PEAK (+0.69%), HAL (-2.07%), STT (+0.91%)
      Average long result: +0.42%, average short result: +0.29%
      Total profit (average): +0.36%
    • Feb 4, 2020
      Long Picks (Jan 29 open - Feb 4 close % change): SLB (-0.67%), VMC (+2.26%), WFC (-0.34%), CNP (+0.72%), CTSH (+0.94%)
      Short Picks (Jan 29 open - Feb 4 close % change): ATO +0.78%), AAPL (-1.73%), PEAK (-0.11%), KMI (+0.28%, ex div. -$0.25), NEM (-0.16%)
      Average long result: +0.58%, average short result: +0.19%
      Total profit (average): +0.39%
    • Jan 28, 2020
      Long Picks (Jan 22 open - Jan 28 close % change): HFC (-2.67%), DD (-6.12%), BEN (-2.34%), XLNX (-3.60%), DIS (-4.21%)
      Short Picks (Jan 22 open - Jan 28 close % change): AAPL (-0.28%), FB (-2.03%), HST (-4.09%), COP (-4.11%), WRK (-3.00%)
      Average long result: -3.79%, average short result: +2.70%
      Total profit (average): -0.54%
    • Jan 21, 2020
      Long Picks: DD, CINF, CHD, CSCO, CTL
      Short Picks: AMD, FB, IRM, SHW, COF
      Average long result: +3.87%, average short result: -2.61%
      Total profit (average): +0.63%
    • Jan 14, 2020
      Long Picks: VTR, COST, ECL, COG, CSCO
      Short Picks: PXD, AMD, VFC, AVB, PEP
      Average long result: +1.42%, average short result: +0.79%
      Total profit (average): +1.10%
    • Jan 7, 2020
      Long Picks: GD, CHRW, CTL, CLX, CSCO
      Short Picks: PM, ANSS, HST, JCI, EA
      Average long result: -1.15%, average short result: +0.97%
      Total profit (average): -0.09%
    • Dec 24, 2019
      Long Picks: VTR, CHRW, CF, IDXX, CINF
      Short Picks: LLY, MS, AES, DRE, AME
      Average long result: +1.12%, average short result: -1.31%
      Total profit (average): -0.10%
    • Dec 17, 2019
      Average long result: +2.45%, average short result: -1.69%
      Total profit (average): +0.38%
    • Dec 10, 2019
      Average long result: +0.87%, average short result: +1.30%
      Total profit (average): +1.08%
    • Dec 03, 2019
      Average long result: -0.03%, average short result: +1.55%
      Total profit (average): +0.76%
    • Nov 26, 2019
      Average long result: +1.89%, average short result: -0.50%
      Total profit (average): +0.69%
    • Nov 19, 2019
      Average long result: 1.08%, average short result: -1.50%
      Total profit (average): -0.21%

    The broad stock market has reached historically high levels recently. The breathtaking correction in December of 2018 was followed by the record-breaking comeback rally. The late October - early November breakout led to another leg higher, as the S&P 500 index broke above 3,300 mark. But will the rally continue? If the market goes higher, which stocks are going to beat the index? And if it reverses down from here, which stocks are about to outperform on the short side?

    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.

    We will assume the following: the stocks will be bought or sold short on the opening of today's trading session (January 2) and sold or bought back on the closing of the next Tuesday's trading session (January 7).

    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.

    Let's start with our first charts (charts courtesy of www.stockcharts.com).

    There's S&P 500's 30-minute chart along with market sector indicators for the past month. The S&P 500 index has gained 2.54% since January 10. The strongest sector was the Utilities XLU, as it gained 7.60%. The Real Estate XLRE gained 6.87% and the Technology XLK gained 6.50%.

    On the other hand, the weakest sector was the Energy XLE, as it lost 9.69%. The Materials XLB gained 0.97% and the Financials XLF gained just 0.58%.

    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 a contrarian approach, and top 2 long and top 2 short candidates using trend-following approach:

    Contrarian approach (betting against the recent trend):

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

    Trend-following approach:

    • buys: 1 x Utilities, 1 x Real Estate
    • sells: 1 x Energy, 1 x Materials

    Contrarian approach

    Top 3 Buy Candidates

    PSX Phillips 66 - Energy

    DD DuPont de Nemours, Inc. - Materials

    • Technically oversold - short-term correction play
    • Positive bullish Harami pattern
    • Potential resistance level of $55-57 (upside profit target level)

    PNC PNC Financial Services Gr - Financials

    • Short-term uptrend
    • Breakout above bull flag pattern
    • Potential resistance level of $160

    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 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.

  • Stock Pick Update: February 5 - February 11, 2020

    February 5, 2020, 9:06 AM

    Let's check which stock 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, February 5 - Tuesday, February 11 period.

    The Stock Pick Update for the Wednesday, January 29 - Tuesday, February 4, 2020 period resulted in a gain of 0.39%. The S&P 500 index has gained 0.25% in the same period. So our stock picks were relatively stronger than the broad stock market. Just imagine what long-term advantage we would have when stocks enter a more prolonged downward correction!

    Below we include statistics and the details of the previous updates. Only the updates for week-long periods since December 24 are verified by the alert's release on our website, but before we decided to make it available to you, we tested our approach and our stock picks performed very well:

    • Feb 4, 2020
      Long Picks (Jan 29 open - Feb 4 close % change): SLB (-0.67%), VMC (+2.26%), WFC (-0.34%), CNP (+0.72%), CTSH (+0.94%)
      Short Picks (Jan 29 open - Feb 4 close % change): ATO (+0.78%), AAPL (-1.73%), PEAK (-0.11%), KMI (+0.28%, ex div. -$0.25), NEM (-0.16%)
      Average long result: +0.58%, average short result: +0.19%
      Total profit (average): +0.39%
    • Jan 28, 2020
      Long Picks (Jan 22 open - Jan 28 close % change): HFC (-2.67%), DD (-6.12%), BEN (-2.34%), XLNX (-3.60%), DIS (-4.21%)
      Short Picks (Jan 22 open - Jan 28 close % change): AAPL (-0.28%), FB (-2.03%), HST (-4.09%), COP (-4.11%), WRK (-3.00%)
      Average long result: +3.87%, average short result: -2.61%
      Total profit (average): +0.63%
    • Jan 21, 2020
      Long Picks: DD, CINF, CHD, CSCO, CTL
      Short Picks: AMD, FB, IRM, SHW, COF
      Average long result: +3.87%, average short result: -2.61%
      Total profit (average): +0.63%
    • Jan 14, 2020
      Long Picks: VTR, COST, ECL, COG, CSCO
      Short Picks: PXD, AMD, VFC, AVB, PEP
      Average long result: +1.42%, average short result: +0.79%
      Total profit (average): +1.10%
    • Jan 7, 2020
      Long Picks: GD, CHRW, CTL, CLX, CSCO
      Short Picks: PM, ANSS, HST, JCI, EA
      Average long result: -1.15%, average short result: +0.97%
      Total profit (average): -0.09%
    • Dec 24, 2019
      Long Picks: VTR, CHRW, CF, IDXX, CINF
      Short Picks: LLY, MS, AES, DRE, AME
      Average long result: +1.12%, average short result: -1.31%
      Total profit (average): -0.10%
    • Dec 17, 2019
      Average long result: +2.45%, average short result: -1.69%
      Total profit (average): +0.38%
    • Dec 10, 2019
      Average long result: +0.87%, average short result: +1.30%
      Total profit (average): +1.08%
    • Dec 03, 2019
      Average long result: -0.03%, average short result: +1.55%
      Total profit (average): +0.76%
    • Nov 26, 2019
      Average long result: +1.89%, average short result: -0.50%
      Total profit (average): +0.69%
    • Nov 19, 2019
      Average long result: 1.08%, average short result: -1.50%
      Total profit (average): -0.21%

    The broad stock market has reached historically high levels recently. The breathtaking correction in December of 2018 was followed by the record-breaking comeback rally. The late October - early November breakout led to another leg higher, as the S&P 500 index broke above 3,300 mark. But will the rally continue? If the market goes higher, which stocks are going to beat the index? And if it reverses down from here, which stocks are about to outperform on the short side?

    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.

    We will assume the following: the stocks will be bought or sold short on the opening of today's trading session (January 2) and sold or bought back on the closing of the next Tuesday's trading session (January 7).

    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.

    Let's start with our first charts (charts courtesy of www.stockcharts.com).

    There's S&P 500's 30-minute chart along with market sector indicators for the past month. The S&P 500 index has gained 1.23% since January 3. The strongest sector was the Utilities XLU, as it gained 7.38%. The Technology XLK gained 6.15% and the Real Estate XLRE gained 4.14%.

    On the other hand, the weakest sector was the Energy XLE, as it lost 12.63%. The Financials XLF lost 1.99%, and the Materials XLB lost 1.35%.

    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 a contrarian approach, and top 2 long and top 2 short candidates using trend-following approach:

    Contrarian approach (betting against the recent trend):

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

    Trend-following approach:

    • buys: 1 x Utilities, 1 x Technology
    • sells: 1 x Energy, 1 x Financials

    Contrarian approach

    Top 3 Buy Candidates

    PSX Phillips 66 - Energy

    MS Morgan Stanley - Financials

    • Breakout above short-term downward trend line
    • Potential upside price target of $56-57

    DD DuPont de Nemours, Inc. - Materials

    • Technically oversold - short-term correction play
    • Positive bullish Harami pattern
    • Potential resistance level of $55-57

    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 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.

  • Stock Pick Update: January 29 - February 4, 2020

    January 29, 2020, 8:49 AM

    Let's check which stock 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, January 29 - Tuesday, February 4 period.

    The Stock Pick Update for the Thursday, January 22 - Tuesday, January 28, 2020 period resulted in a loss of 0.54%. The S&P 500 index has lost 1.62% in the same period. So our stock picks were relatively stronger than the broad stock market. Just imagine what long-term advantage we would have when stocks enter a more prolonged downward correction!

    Below we include statistics and the details of the previous updates. Only the updates for week-long periods since December 24 are verified by the alert's release on our website, but before we decided to make it available to you, we tested our approach and our stock picks performed very well:

    • Jan 28, 2020
      Long Picks (Jan 22 open - Jan 28 close % change): HFC (-2.67%), DD (-6.12%), BEN (-2.34%), XLNX (-3.60%), DIS (-4.21%)
      Short Picks (Jan 22 open - Jan 28 close % change): AAPL (-0.28%), FB (-2.03%), HST (-4.09%), COP (-4.11%), WRK (-3.00%)
      Average long result: +3.87%, average short result: -2.61%
      Total profit (average): +0.63%
    • Jan 21, 2020
      Long Picks: DD, CINF, CHD, CSCO, CTL
      Short Picks: AMD, FB, IRM, SHW, COF
      Average long result: +3.87%, average short result: -2.61%
      Total profit (average): +0.63%
    • Jan 14, 2020
      Long Picks: VTR, COST, ECL, COG, CSCO
      Short Picks: PXD, AMD, VFC, AVB, PEP
      Average long result: +1.42%, average short result: +0.79%
      Total profit (average): +1.10%
    • Jan 7, 2020
      Long Picks: GD, CHRW, CTL, CLX, CSCO
      Short Picks: PM, ANSS, HST, JCI, EA
      Average long result: -1.15%, average short result: +0.97%
      Total profit (average): -0.09%
    • Dec 24, 2019
      Long Picks: VTR, CHRW, CF, IDXX, CINF
      Short Picks: LLY, MS, AES, DRE, AME
      Average long result: +1.12%, average short result: -1.31%
      Total profit (average): -0.10%
    • Dec 17, 2019
      Long Picks: WMT, FAST, SEE, ZTS, SLB
      Short Picks: BMY, PSX, SST, LW, EMR
      Average long result: +2.45%, average short result: -1.69%
      Total profit (average): +0.38%
    • Dec 10, 2019
      Long Picks: PSA, OXY, DE, ILMN, TTWO
      Short Picks: ZTS, DIS, LW, WELL, PSX
      Average long result: +0.87%, average short result: +1.30%
      Total profit (average): +1.08%
    • Dec 03, 2019
      Long Picks: PSA, EXC, FANG, ILMN, FLT
      Short Picks: ABBV, NVDA, CHTR, WELL, AEP
      Average long result: -0.03%, average short result: +1.55%
      Total profit (average): +0.76%
    • Nov 26, 2019
      Long Picks: VTR, YUM, HAL, ADI, CME
      Short Picks: MSFT, JPM, ABT, WELL, LOW
      Average long result: +1.89%, average short result: -0.50%
      Total profit (average): +0.69%
    • Nov 19, 2019
      Long Picks: PSA, DUK, EBAY, MMC, MMM
      Short Picks: C, CAT, TXN, PLD, SO
      Average long result: 1.08%, average short result: -1.50%
      Total profit (average): -0.21%

    The broad stock market has reached historically high levels recently. The breathtaking correction in December of 2018 was followed by the record-breaking comeback rally. The late October - early November breakout led to another leg higher, as the S&P 500 index broke above the 3,300 mark. But will the rally continue? If the market goes higher, which stocks are going to beat the index? And if it reverses down from here, which stocks are about to outperform on the short side?

    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.

    We will assume the following: the stocks will be bought or sold short on the opening of today's trading session (January 2) and sold or bought back on the closing of the next Tuesday's trading session (January 7).

    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.

    Let's start with our first charts (charts courtesy of www.stockcharts.com).

    There's S&P 500's 30-minute chart along with market sector indicators for the past month. The S&P 500 index has gained 1.13% since December 27. The strongest sector was the Utilities XLU, as it gained 6.67%. The Technology XLK gained 5.44% and the Real Estate XLRE gained 4.20%.

    On the other hand, the weakest sector was the Energy XLE, as it lost 8.09%. The Materials XLB lost 3.70%, and the Financials XLF lost 1.85%.

    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 a contrarian approach, and top 2 long and top 2 short candidates using the trend-following approach:

    Contrarian approach (betting against the recent trend):

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

    Trend-following approach:

    • buys: 1 x Utilities, 1 x Technology
    • sells: 1 x Energy, 1 x Materials

    Contrarian approach

    Top 3 Buy Candidates

    SLB Schlumberger Ltd. - Energy

    The SLB stock has been trading within a strong downtrend recently. The stock is one of the most technically oversold in its sector. So it is our upward correction play. If the market bounces of a support level of around $33.5, it could get back to the previously broken support level of $35.5-36.0.

    VMC Vulcan Materials Co. - Materials

    The Vulcan Materials Co. stock trades within a medium-term consolidation. But we can see a month-long wedge pattern and the market could break higher out of it. The nearest important resistance level is at around $144-145.

    WFC Wells Fargo & Co. - Financials

    The WFC stock was extending its downtrend recently. However, we can see a bottoming wedge pattern along with some positive RSI indicator divergence and the oversold condition. So it is another upward correction play in our Stock Picks portfolio.

    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 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.

  • Stock Pick Update: January 22 - January 28, 2020

    January 22, 2020, 9:10 AM

    Let's check which stock 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, January 22 - Tuesday, January 28 period.

    The Stock Pick Update for the Thursday, January 15 - Tuesday, January 21, 2020 period resulted in a gain of 0.63%. The S&P 500 index has gained 1.17% in the same period. However, our long stock picks have gained 3.87%. Unfortunately, short stock picks lost 2.61%, as the broad stock market rallied to new record highs. Just imagine what advantage we would have when stocks enter a more prolonged downward correction!

    Below we include statistics and the details of the previous updates. Only the updates for week-long periods ending on December 24, January 14 and January 21 are verified by the alert's release on our website, but before we decided to make it available to you, we tested our approach and our stock picks performed very well:

    • Jan 21, 2020

    Long Picks: DD, CINF, CHD, CSCO, CTL
    Short Picks: AMD, FB, IRM, SHW, COF
    Average long result: +3.87%, average short result: -2.61%

    Total profit (average): +0.63%

    • Jan 14, 2020

    Long Picks: VTR, COST, ECL, COG, CSCO
    Short Picks: PXD, AMD, VFC, AVB, PEP
    Average long result: +1.42%, average short result: +0.79%

    Total profit (average): +1.10%

    • Jan 7, 2020

    Long Picks: GD, CHRW, CTL, CLX, CSCO
    Short Picks: PM, ANSS, HST, JCI, EA
    Average long result: -1.15%, average short result: +0.97%

    Total profit (average): -0.09%

    • Dec 24, 2019

    Long Picks: VTR, CHRW, CF, IDXX, CINF
    Short Picks: LLY, MS, AES, DRE, AME
    Average long result: +1.12%, average short result: -1.31%
    Total profit (average): -0.10%

    • Dec 17, 2019

    Long Picks: WMT, FAST, SEE, ZTS, SLB
    Short Picks: BMY, PSX, SST, LW, EMR

    Average long result: +2.45%, average short result: -1.69%
    Total profit (average): +0.38%

    • Dec 10, 2019

    Long Picks: PSA, OXY, DE, ILMN, TTWO
    Short Picks: ZTS, DIS, LW, WELL, PSX

    Average long result: +0.87%, average short result: +1.30%

    Total profit (average): +1.08%

    • Dec 03, 2019

    Long Picks: PSA, EXC, FANG, ILMN, FLT
    Short Picks: ABBV, NVDA, CHTR, WELL, AEP

    Average long result: -0.03%, average short result: +1.55%
    Total profit (average): +0.76%

    • Nov 26, 2019

    Long Picks: VTR, YUM, HAL, ADI, CME
    Short Picks: MSFT, JPM, ABT, WELL, LOW

    Average long result: +1.89%, average short result: -0.50%
    Total profit (average): +0.69%

    • Nov 19, 2019

    Long Picks: PSA, DUK, EBAY, MMC, MMM
    Short Picks: C, CAT, TXN, PLD, SO
    Average long result: 1.08%, average short result: -1.50%
    Total profit (average): -0.21%

    The broad stock market has reached historically high levels recently. Last year's breathtaking December correction was followed by the record-breaking comeback rally. The late October - early November breakout led to another leg higher, as the S&P 500 index broke got close to the 3,300 mark. But will the rally continue? If the market goes higher, which stocks are going to beat the index? And if it reverses down from here, which stocks are about to outperform on the short side?

    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.

    We will assume the following: the stocks will be bought or sold short on the opening of today's trading session (January 22) and sold or bought back on the closing of the next Tuesday's trading session (January 28).

    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.

    Let's start with our first charts (charts courtesy of www.stockcharts.com).

    There's S&P 500's 30-minute chart along with market sector indicators for the past month. The S&P 500 index has gained 3.60% since December 20. The strongest sector was the Technology XLK, as it gained 7.38%. The Communication Services XLC gained 5.39% and the Real Estate XLRE gained 5.30%.

    On the other hand, the weakest sector was the Energy XLE, as it lost 1.61%. The Materials XLB lost 0.13%, and the Financials XLF gained just 0.38%.

    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 a contrarian approach, and top 2 long and top 2 short candidates using the trend-following approach:

    Contrarian approach (betting against the recent trend):

    • buys: 1 x Energy, 1 x Materials, 1 x Financials
    • sells: 1 x Technology, 1 x Communication Services, 1 x Real Estate

    Trend-following approach:

    • buys: 1 x Technology, 1 x Communication Services
    • sells: 1 x Energy, 1 x Materials

    Contrarian approach

    Top 3 Buy Candidates

    HFC HollyFrontier Corp. - Energy

    The HFC stock has extended its medium-term downtrend yesterday. But we can see some potential declining wedge bottoming pattern here. The support level is at around $45-46. On the other hand, resistance level is at $48-49.

    DD DuPont de Nemours, Inc. - Materials

    The DD stock is our long stock pick again. It has been relatively weak in the recent weeks following breaking below the early December local low. However, its short-term trading action is still quite bullish and we expect an upward correction. Potential resistance level is at $64-65.

    BEN Franklin Resources, Inc. - Financials

    The Franklin Resources, Inc. stock broke above its recent downward trend line on Thursday. We could see an attempt at retracing more of its November's decline. The resistance level is at around $26.00, among others.

    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 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.

  • Stock Pick Update: January 15 - January 21, 2020

    January 15, 2020, 8:51 AM

    Let's check which stock 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, January 15 - Tuesday, January 21 period.

    The Stock Pick Update for the Thursday, January 8 - Tuesday, January 14, 2020 period resulted in a gain of 1.10%. The S&P 500 index has gained 1.38% in the same period. However, our long stock picks have gained 1.42%. The short stock picks have also been profitable despite the broad stock market's record breaking advances!

    Below we include statistics and the details of the previous updates. Only the updates for week-long periods ending on December 24 and January 14 are verified by the alert's release on our website, but before we decided to make it available to you, we tested our approach and our stock picks performed very well:

    • Jan 14, 2020

    Long Picks: VTR, COST, ECL, COG, CSCO
    Short Picks: PXD, AMD, VFC, AVB, PEP
    Average long result: +1.42%, average short result: +0.79%
    Total profit (average): +1.10%

    • Jan 7, 2020

    Long Picks: GD, CHRW, CTL, CLX, CSCO
    Short Picks: PM, ANSS, HST, JCI, EA
    Average long result: -1.15%, average short result: +0.97%
    Total profit (average): -0.09%

    • Dec 24, 2019

    Long Picks: VTR, CHRW, CF, IDXX, CINF
    Short Picks: LLY, MS, AES, DRE, AME
    Average long result: +1.12%, average short result: -1.31%
    Total profit (average): -0.10%

    • Dec 17, 2019

    Long Picks: WMT, FAST, SEE, ZTS, SLB
    Short Picks: BMY, PSX, SST, LW, EMR
    Average long result: +2.45%, average short result: -1.69%
    Total profit (average): +0.38%

    • Dec 10, 2019

    Long Picks: PSA, OXY, DE, ILMN, TTWO
    Short Picks: ZTS, DIS, LW, WELL, PSX
    Average long result: +0.87%, average short result: +1.30%
    Total profit (average): +1.08%

    • Dec 03, 2019

    Long Picks: PSA, EXC, FANG, ILMN, FLT
    Short Picks: ABBV, NVDA, CHTR, WELL, AEP
    Average long result: -0.03%, average short result: +1.55%
    Total profit (average): +0.76%

    • Nov 26, 2019

    Long Picks: VTR, YUM, HAL, ADI, CME
    Short Picks: MSFT, JPM, ABT, WELL, LOW
    Average long result: +1.89%, average short result: -0.50%
    Total profit (average): +0.69%

    • Nov 19, 2019

    Long Picks: PSA, DUK, EBAY, MMC, MMM
    Short Picks: C, CAT, TXN, PLD, SO
    Average long result: 1.08%, average short result: -1.50%
    Total profit (average): -0.21%

    The broad stock market has reached historically high levels recently. Last year's breathtaking December correction was followed by the record-breaking comeback rally. The late October - early November breakout led to another leg higher, as the S&P 500 index broke got close to the 3,300 mark. But will the rally continue? If the market goes higher, which stocks are going to beat the index? And if it reverses down from here, which stocks are about to outperform on the short side?

    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.

    We will assume the following: the stocks will be bought or sold short on the opening of today's trading session (January 2) and sold or bought back on the closing of the next Tuesday's trading session (January 7).

    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.

    Let's start with our first charts (charts courtesy of www.stockcharts.com).

    There's a S&P 500's 30-minute chart along with market sector indicators for the past month. The S&P 500 index has gained 3.63% since December 13. The strongest sector was the Technology XLK, as it gained 7.29%. The Communication Services XLC gained 5.70%, and the Real Estate XLRE gained 4.83%.

    On the other hand, the weakest sector was the Materials XLB, as it lost 0.8%. The Financials XLF gained just 0.58%, and the Consumer Staples XLP gained 1.69%.

    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 a contrarian approach, and top 2 long and top 2 short candidates using the trend-following approach:

    Contrarian approach (betting against the recent trend):

    • buys: 1 x Materials, 1 x Financials, 1 x Consumer Staples
    • sells: 1 x Technology, 1 x Communication Services, 1 x Real Estate

    Trend-following approach:

    • buys: 1 x Technology, 1 x Communication Services
    • sells: 1 x Materials, 1 x Financials

    Contrarian approach

    Top 3 Buy Candidates

    DD DuPont de Nemours, Inc. - Materials

    The DD stock has been relatively weak in the recent weeks following breaking below the early December local low. However, its short-term trading action is quite bullish and we expect some upward correction. Potential resistance level is at $62-63.

    CINF Cincinnati Financial Corp. - Financials

    The Cincinnati Financial Corp. stock keeps trading sideways following breaking above two-month-long downward trend line. We could see a breakout higher at some point. The support level is at around $103, and the resistance level is at $106-107.

    CHD Church & Dwight Co, Inc. - Consumer Staples

    The CHD stock has been relatively strong in the recent days. We could see an attempt at breaking above the resistance level of around $70-71.

    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 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.

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