To summarize, the type of sentiment and extremes in new lows and highs, magnitude and oversold readings have occurred at lows in the past. There is, however, an exception. If the market is going from a bullish phase to a bearish phase, these readings are not extreme – these readings are normal for a long bear market like the 1970s. I think we will know which phase it is. here a week. If the market continues to rise, the rally should extend into April. This will tell us that the decline was an ABC correction. If there is a new low, it is a five wave decline with new weakness to follow.
Here is a screen of the stocks that have performed best over the coming period. To select certain stocks for short-term trading, the following strategy is used. The best performers of the chosen period with at least 20 years of price data are calculated and presented below. Problems are ranked by the percentage of periods in which the stock rose.
January 31 Bullish Actionsst to February 6and
From this list, stocks or ETFs are selected for their relative strength and by dynamic cycles. The latter term refers to the most active cycles that are currently generating profits.
Lockheed Martin is number one on screen. The stock has risen nearly 80% of the time in the coming week over the past 26 years. The expected return was almost 1.5%. Technically, the stock is solid.
The first four months of each year have been the strongest; the stock rose 77% of the time. Relative strength has been increasing since October. The momentum is positive, showing a series of higher lows. The stock is expected to reach the $400-$405 area.
Pioneer Natural Resources was up nearly 80% of the time next week. The average gain was 2.2%. Over the past 24 years, the stock has risen 75% of the time between Jan. 30and and February 17and.
The stock is in the leading energy sector. Its relative strength has been rising since August. The stock price should cross $220 or more.