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Stock Pick Updates

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Top 5 Long Stock Picks
Top 5 Short Stock Picks


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: April 1 - April 7, 2020

    April 1, 2020, 8:57 AM

    The broad stock market has been in a rebound mode last week (March 25 - March 31). On Monday, March 23 it sold off to the 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 S&P 500 index got back to local highs above 2,600 mark. Is this a new uptrend or just upward correction before another leg down? We will certainly see more short-term volatility.

    The S&P 500 index has gained 5.16% since last Wednesday's open. In the same period of time our five long and five short stock picks have lost 2.10%. So our stock picks were relatively weaker than the broad stock market. Long stock picks have outperformed short stock picks, as they've gained 3.53%. Short stock picks have resulted in a loss of 7.73%. However, the overall results remain relatively better than the S&P 500 index over last weeks.

    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:

    • Mar 31, 2020
      Long Picks (Mar 25 open - Mar 31 close % change): INTC (+3.13%), STZ (+14.92%), PFE (+10.64%), SLB (-10.01%), WFC (-1.03%)
      Short Picks (Mar 25 open - Mar 31 close % change): WMB (+8.10%), PGR (+7.03%), EQIX (+16.57%), ADBE (+3.32%), CHD (+3.60%)

      Average long result: +3.53%, average short result: -7.73%
      Total profit (average): -2.10%
    • Mar 24, 2020
      Long Picks (Mar 18 open - Mar 24 close % change): LW (+9.21%), BDX (-15.16%), PEG (+0.30%), SLB (+10.00%), AXP (+5.04%)
      Short Picks (Mar 18 open - Mar 24 close % change): COG (-12.05%), PGR (-5.79%), ITW (-7.68%), HSY (-7.78%), REGN (-9.33%)

      Average long result: -0.38%, average short result: +8.53%
      Total profit (average): +4.07%
    • Mar 17, 2020
      Long Picks (Mar 11 open - Mar 17 close % change): ADM (-1.26%), AES (-21.68%), SPG (-45.84%), PSX (-23.54%), BAC (+3.77%)
      Short Picks (Mar 11 open - Mar 17 close % change): COG (+14.72%), CME (-17.57%), NOC (-1.88%), CLX (+14.35%), WEC (+2.48%)

      Average long result: -17.71%, average short result: -2.42%
      Total profit (average): -10.07%

    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, April 1 - Tuesday, April 7 period.

    We will assume the following: the stocks will be bought or sold short on the opening of today's trading session (April 1) and sold or bought back on the closing of the next Tuesday's trading session (April 7).

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

    Contrarian approach (betting against the recent trend):

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

    Trend-following approach

    Top 3 Buy Candidates

    PFE Pfizer, Inc. - Health Care

    • Breakout above downward trend line
    • Resistance level of $32-36 (upside profit target level)
    • RSI Indicator confirming uptrend

    KR Kroger Co. - Consumer Staples

    • Price bounces off medium-term upward trend line
    • The resistance level at $33.5-36.0 (upside profit target level)

    ANSS ANSYS, Inc. - Technology

    • Breakout above month-long downward trend line
    • The resistance level of $260-265
    • Positive divergence between the price and RSI indicator

    Summing up, the above trend-following long stock picks are just a part of our whole Stock Pick Update. The Health Care, Consumer Staples and Technology sectors were relatively the strongest in the last 30 days. And they have lost less 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.

  • Stock Pick Update: March 25 - March 31, 2020

    March 25, 2020, 9:19 AM

    Last week (March 18 - March 24) has been a roller coaster ride for the broad stock market. The S&P 500 index dipped below the previous local low on Wednesday, before bouncing off from 2,300 level and getting back to 2,450. Then on Friday and Monday it sold off to the new medium-term low of 2,191.86. On Monday 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! Yesterday we saw huge come-back rally, as the S&P 500 index got back to 2,450 level again. Our last week's Stock Pick Update has been released just before the mentioned roller coaster ride. Was it a bottoming pattern before a rebound or just upward correction before another decline? We will certainly see more short-term volatility.

    The S&P 500 index has gained 0.44% since last Wednesday's open. In the same period of time our five long and five short stock picks have gained 4.07%. So our stock picks were relatively stronger than the broad stock market, as they regained some of last week's lost ground. Short stock picks have outperformed lagging long stock picks, as they've gained 8.53%. Long stock picks lost 0.38%, so they basically followed the index in the last five trading days. The overall results remain relatively better than the S&P 500 index over last weeks.

    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:

    • Mar 24, 2020
      Long Picks (Mar 18 open - Mar 24 close % change): LW (+9.21%), BDX (-15.16%), PEG (+0.30%), SLB (+10.00%), AXP (+5.04%)
      Short Picks (Mar 18 open - Mar 24 close % change): COG (-12.05%), PGR (-5.79%), ITW (-7.68%), HSY (-7.78%), REGN (-9.33%)

      Average long result: -0.38%, average short result: +8.53%
      Total profit (average): +4.07%
    • Mar 17, 2020
      Long Picks (Mar 11 open - Mar 17 close % change): ADM (-1.26%), AES (-21.68%), SPG (-45.84%), PSX (-23.54%), BAC (+3.77%)
      Short Picks (Mar 11 open - Mar 17 close % change): COG (+14.72%), CME (-17.57%), NOC (-1.88%), CLX (+14.35%), WEC (+2.48%)

      Average long result: -17.71%, average short result: -2.42%
      Total profit (average): -10.07%
    • Mar 10, 2020
      Long Picks (Mar 4 open - Mar 10 close % change): VNO (-8.94%), WBA (+4.26%), PFE (-1.45%), NBL (-40.68%), JPM (-14.92%)
      Short Picks (Mar 4 open - Mar 10 close % change): APA (-57.45%), PGR (-0.09%), ROK (-9.59%), EQIX (-2.51%), KR (+9.84%)

      Average long result: -12.34%, average short result: 11.96%
      Total profit (average): -0.19%

    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, March 25 - Tuesday, March 31 period.

    We will assume the following: the stocks will be bought or sold short on the opening of today's trading session (March 25) and sold or bought back on the closing of the next Tuesday's trading session (March 31).

    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 sectors' relative performance analysis, 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 Health Care
    • sells: 1 x Energy, 1 x Financials, 1 x Real Estate

    Contrarian approach (betting against the recent trend):

    • buys: 1 x Energy, 1 x Financials
    • sells: 1 x Technology, 1 x Consumer Staples

    Trend-following approach

    Top 3 Buy Candidates

    INTC Intel Corp. - Technology

    • Breakout above downward trend line
    • Resistance level of $60 (upside profit target level)

    STZ Constellation Brands, Inc. - Consumer Staples

    PFE Pfizer, Inc. - Health Care

    • Potential upward reversal pattern - upward correction play
    • The resistance level of $32.50
    • Positive divergence between the price and RSI indicator

    Summing up, the above trend-following long stock picks are just a part of our whole Stock Pick Update. The Technology, Consumer Staples and Health Care sectors were relatively the strongest in the last 30 days. And they have lost less 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.

  • Stock Pick Update: March 18 - March 24, 2020

    March 18, 2020, 8:20 AM

    The corona virus and economic slowdown fears are still dominating headlines. We released our last week's Stock Pick Update just before another wave of the broad stock market's sell-off. Then we have seen very volatile market conditions. Was it a bottoming pattern before a rebound or just consolidation before another decline? We will certainly see more volatility in the short-term. 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, March 18 - Tuesday, March 24 period.

    The S&P 500 index has lost 10.49% since last Wednesday's open. In the same period of time our five long and five short stock picks have lost 10.07%. They basically followed another huge wave of the broad stock market' sell-off. Our short stock picks lost 2.42% and our long stock picks lost 17.71%. It leads to a conclusion that the recent volatility on the financial markets makes effective stock picking very hard. However, the overall results remain relatively better than the S&P 500 index over last weeks.

    If stocks were in a more prolonged downward correction, 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:

    • Mar 17, 2020
      Long Picks (Mar 11 open - Mar 17 close % change): ADM (-1.26%), AES (-21.68%), SPG (-45.84%), PSX (-23.54%), BAC (+3.77%)
      Short Picks (Mar 11 open - Mar 17 close % change): COG (+14.72%), CME (-17.57%), NOC (-1.88%), CLX (+14.35%), WEC (+2.48%)

      Average long result: -17.71%, average short result: -2.42%
      Total profit (average): -10.07%
    • Mar 10, 2020
      Long Picks (Mar 4 open - Mar 10 close % change): VNO (-8.94%), WBA (+4.26%), PFE (-1.45%), NBL (-40.68%), JPM (-14.92%)
      Short Picks (Mar 4 open - Mar 10 close % change): APA (-57.45%), PGR (-0.09%), ROK (-9.59%), EQIX (-2.51%), KR (+9.84%)

      Average long result: -12.34%, average short result: 11.96%
      Total profit (average): -0.19%
    • Mar 3, 2020
      Long Picks (Feb 26 open - Mar 3 close % change): BKR (-11.98%), MMM (-2.89%), PFE (+0.18%), EXR (-0.96%), WEC (-2.91%)
      Short Picks (Feb 26 open - Mar 3 close % change): MAA (-4.20%), EIX (-9.01%), CLX (-0.02%), OKE (-7.87%), CMI (-6.54%)

      Average long result: -3.72%, average short result: +5.53%
      Total profit (average): +0.91%

    The broad stock market has reached historically high levels in February. The breathtaking correction in December of 2018 was followed by the record-breaking comeback rally. But the recent sell-off suggests that investors should prepare for more volatility. If the market reverses higher, which stocks are going to beat the index? And if it continues lower 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 (March 18) and sold or bought back on the closing of the next Tuesday's trading session (March 24).

    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 Staples, 1 x Health Care, 1 x Utilities
    • sells: 1 x Energy, 1 x Financials, 1 x Industrials

    Contrarian approach (betting against the recent trend):

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

    Trend-following approach

    Top 3 Buy Candidates

    LW Lamb Weston Holdings, Inc. - Consumer Staples

    • Potential bottoming pattern
    • Technically oversold - short-term upward correction play
    • Resistance level of $60-70 (upside profit target level)

    BDX Becton Dickinson and Co. - Health Care

    • Breakout above month-long downward trend line
    • Potential resistance level at $260-275 (upside profit target level)

    PEG Public Service Enterprise - Utilities

    • Potential upward reversal pattern - upward correction play
    • The resistance level of $50
    • Positive divergence between the price and RSI indicator

    Summing up, the above trend-following long stock picks are just a part of our whole Stock Pick Update. The Consumer Staples, Health Care and Utilities sectors were relatively the strongest since February 18. And they have lost less 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.

  • Stock Pick Update: March 11 - March 17, 2020

    March 11, 2020, 5:29 AM

    The corona virus and economic slowdown fears continued dominating headlines in the recent days. Our last week's Stock Pick Update has been released at the local high of stock market's dead-cat-bounce upward correction. Then the broad stock market resumed its downtrend, and on Monday it basically crashed following Friday's OPEC meeting negative oil news. 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, March 11 - Tuesday, March 17 period.

    The S&P 500 index has lost 5.37% since last Wednesday's open. But our five long and five short stock picks were flat, as they lost 0.19% in the same period! So our stock picks have been relatively much stronger than the broad stock market for the third time in a row. Our short stock picks gained 11.96% and they outperformed the index on the short side again. Long stock picks lost 12.34%, but the whole ten-stock-picks portfolio performed incredibly well in time of a stock market's big sell-off.

    If stocks were in a more prolonged downward correction, 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:

    • Mar 10, 2020
      Long Picks (Mar 4 open - Mar 10 close % change): VNO (-8.94%), WBA (+4.26%), PFE (-1.45%), NBL (-40.68%), JPM (-14.92%)
      Short Picks (Mar 4 open - Mar 10 close % change): APA (-57.45%), PGR (-0.09%), ROK (-9.59%), EQIX (-2.51%), KR (+9.84%)

      Average long result: -12.34%, average short result: 11.96%
      Total profit (average): -0.19%
    • Mar 3, 2020
      Long Picks (Feb 26 open - Mar 3 close % change): BKR (-11.98%), MMM (-2.89%), PFE (+0.18%), EXR (-0.96%), WEC (-2.91%)
      Short Picks (Feb 26 open - Mar 3 close % change): MAA (-4.20%), EIX (-9.01%), CLX (-0.02%), OKE (-7.87%), CMI (-6.54%)

      Average long result: -3.72%, average short result: +5.53%
      Total profit (average): +0.91%
    • Feb 25, 2020
      Long Picks (Feb 19 open - Feb 25 close % change): XEC (-7.66%), BSX (-5.67%), NUE (-5.31%), PEG (-2.69%), SPG (-2.59%)
      Short Picks (Feb 19 open - Feb 25 close % change): AEE (-3.55%), CBRE (-8.58%), INTC (-10.03%), SLB (-13.40%), A (-7.97%)

      Average long result: -4.78%, average short result: +8.71%
      Total profit (average): +1.97%

    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 the recent sell-off suggests that investors should prepare for volatility. If the market reverses higher, which stocks are going to beat the index? And if it continues lower 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 (March 11) and sold or bought back on the closing of the next Tuesday's trading session (March 17).

    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 that, we chose 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 Staples, 1 x Utilities, 1 x Real Estate
    • sells: 1 x Energy, 1 x Financials, 1 x Industrials

    Contrarian approach (betting against the recent trend):

    • buys: 1 x Energy, 1 x Financials
    • sells: 1 x Consumer Staples, 1 x Utilities

    Trend-following approach

    Top 3 Buy Candidates

    (charts courtesy of www.stockcharts.com)

    ADM Archer Daniels Midland Co. - Consumer Staples

    • Potential falling wedge bottoming pattern
    • Technically oversold - short-term upward correction play
    • Positive divergence between the price and RSI indicator
    • Resistance level of $39-40 (upside profit target level)

    AES AES Corp. - Utilities

    SPG Simon Property Group, Inc. - Real Estate

    • Potential upward reversal pattern - upward correction play
    • The resistance levels of $120 and $130

    Summing up, the above trend-following long stock picks are just a part of our whole Stock Pick Update. The Consumer Staples, Utilities and Real Estate sectors were the strongest since February 11. And they have lost less 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.

  • Stock Pick Update: March 4 - March 10, 2020

    March 4, 2020, 7:48 AM

    Stocks continued selling off, as corona virus and economic slowdown fears kept dominating headlines in the recent days. The S&P 500 index has lost 4.35% since last Wednesday's open. But our five long and five short stock picks were profitable again, as they gained almost 1% in the same period! 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, March 4 - Tuesday, March 10 period.

    The Stock Pick Update for the Wednesday, February 26 - Tuesday, March 3, 2020 period resulted in a gain of 0.91%. The S&P 500 index has lost 4.35%, so our stock picks have been relatively much stronger than the broad stock market for the second time in a row. Our short stock picks gained 5.53% and they outperformed the index on the short side again. Long stock picks lost 3.72%, but the whole ten-stock-picks portfolio performed incredibly well in time of a stock market's big sell-off.

    If stocks were in a more prolonged downward correction, 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:

    • Mar 3, 2020
      Long Picks (Feb 26 open - Mar 3 close % change): BKR (-11.98%), MMM (-2.89%), PFE (+0.18%), EXR (-0.96%), WEC (-2.91%)
      Short Picks (Feb 26 open - Mar 3 close % change): MAA (-4.20%), EIX (-9.01%), CLX (-0.02%), OKE (-7.87%), CMI (-6.54%)

      Average long result: -3.72%, average short result: +5.53%
      Total profit (average): +0.91%
    • Feb 25, 2020
      Long Picks (Feb 19 open - Feb 25 close % change): XEC (-7.66%), BSX (-5.67%), NUE (-5.31%), PEG (-2.69%), SPG (-2.59%)
      Short Picks (Feb 19 open - Feb 25 close % change): AEE (-3.55%), CBRE (-8.58%), INTC (-10.03%), SLB (-13.40%), A (-7.97%)

      Average long result: -4.78%, average short result: +8.71%
      Total profit (average): +1.97%
    • Feb 18, 2020
      Long Picks (Feb 11 open - Feb 18 close % change): PSX (-2.96%), DD (+1.00%), PNC (-2.96%), NRG (+2.83%), EXR (+3.66%)
      Short Picks (Feb 11 open - Feb 18 close % change): NEE (+3.91%), PLD (+1.76%), AMD (+4.33%), PXD (-2.28%), DOW (-3.92%)

      Average long result: +0.32%, average short result: -0.76%
      Total profit (average): -0.22%

    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 the recent sell-off suggests that investors should prepare for volatility. If the market reverses higher, which stocks are going to beat the index? And if it continues lower 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 (March 4) and sold or bought back on the closing of the next Tuesday's trading session (March 10).

    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 lost 7.55% since February 4. The strongest sector was Real Estate XLRE, as it lost just 1.81%. The Consumer Staples XLP has lost 4.65% and Health Care XLV lost 5.51%.

    On the other hand, the weakest sector was Energy XLE again, as it lost 13.42%. The Financials XLF lost 10.81% and Industrials XLI lost 8.99%.

    Based on the above, we decided to choose our stock picks for the next week. This time, 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 Real Estate, 1 x Consumer Staples, 1 x Health Care
    • sells: 1 x Energy, 1 x Financials, 1 x Industrials

    Contrarian approach (betting against the recent trend):

    • buys: 1 x Energy, 1 x Financials
    • sells: 1 x Real Estate, 1 x Consumer Staples

    Trend-following approach

    Top 3 Buy Candidates

    VNO Vornado Realty Trust - Real Estate

    • Technically oversold - short-term upward correction play
    • Potential resistance level of $57 (upside profit target level)

    WBA Walgreens Boots Alliance, Inc. - Consumer Staples

    • Technically oversold - short-term upward correction play
    • Positive divergence between the price and RSI indicator
    • Potential resistance level at $50-51

    PFE Pfizer, Inc. - Health Care

    • Consolidation following the recent sell-off, possible medium-term bottoming pattern
    • The price is at the support level of $33.50-34.00, marked by previous lows

    Summing up, the above trend-following long stock picks are just a part of our whole Stock Pick Update. The Real Estate, Consumer Staples and Health Care sectors were the strongest since February 4. And they have lost less 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 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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