My Weekly Stock pick for Week 18 of 2022 (Apr. 29 - May 6)
Dear subscribers,
Welcome to My Weekly Stock pick #18 of 2022.
Summary
My Weekly Stock is our stock-picking strategy delivering more than 400% cumulative returns since 2019 and 24% so far in 2022.
Last week, our stock selection was down 2.2%.
Our stock pick for week 18 of 2022 is MRK (Merck & Co).
Introduction
My Weekly Stock is based on a Momentum strategy, validated through our proprietary algorithm and years of research and back-testing.
We then developed a simple trading principle: 1 mega-cap stock pick per week to hold for no more than five days.
Learn more about our trading strategy here.
Performance
We measure weekly performance based on an entry at the Monday open and an exit at the Friday close. Cumulative and yearly performance assumes weekly results are compounded.
Our approach generates sizeable returns in absolute and relative to the SP500. Our weekly stock picks delivered a cumulative return of 400%, 5x the performance of the SP500 since 2019.
Last week, our stock pick (UNH) was down 2.2%, which adds up to a +24% performance so far in 2022.
Access here our performance tracking
Market Outlook
The equity markets were down for the week, with the SP500 losing 3.3%, the Dow Jones 2.5%, and the NASDAQ 3.9%, for a 4th consecutive weekly loss. The SP500 frustratingly played ping pong between 4200 and 4300 all week, trapping both bulls and bears with false breakdowns and breakouts, before finally caving in on Friday afternoon.
The first 4 months of the year delivered the worst performance since the 1930s as the markets digested a full load of negative news: record inflation, FED tightening policy, slowing global economy, COVID restrictions in China impacting supply chains, the Russia / Ukraine conflict, as well as disappointing earnings from mega-caps (Amazon, Apple just this week).
This Week’s Selection
Our stock pick for week 18 of 2022 is MRK (Merck & Co).
MRK just released positive earnings last week and is trading just 3% below its 52-week high.
Our confidence level is MEDIUM. The trading environment remains very challenging, so we urge you to proceed with caution, especially if you trade options.
The confidence level is a qualitative assessment of the market conditions based on our own experience trading these stock picks. It can be a valuable tool to size your position and leverage.
Have a great trading week!
My Weekly Stock
Disclaimer
My Weekly Stock shares information and content on our websites, social networks, or newsletters only for educational purposes. The information contained in our publications has been prepared based on publicly available information and proprietary research. The author does not guarantee the correctness, accuracy, or completeness of the information provided.
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Disclosure
We wrote this article ourselves, and it expresses our own opinions. We have no business relationship with any company mentioned in this article.
We do not hold any position in the stocks mentioned above, but we may initiate one in the next 48 hours.