My Weekly Stock pick for Week 19 of 2022 (May 6 - 13)
Dear subscribers,
Welcome to My Weekly Stock pick #19 of 2022.
Summary
My Weekly Stock is our stock-picking strategy delivering more than 400% cumulative returns since 2019 and 23% so far in 2022.
Last week, our stock selection was down 0.4%.
Our stock pick for week 19 of 2022 is CVX (Chevron Corp.).
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 (MRK) was down 0.4%, which adds up to a +23% performance so far in 2022.
Access here our performance tracking
Market Outlook
The equity markets were slightly down for the week, with the SP500 losing 0.2%, the Dow Jones 0.2%, and the NASDAQ 1.5%, for a 5th consecutive weekly loss. The markets started on the good side after the FED increased its benchmark rate by 50bps but with a less hawkish stance than expected. However, the rally proved to be short-lived, and the stocks fell sharply on Thursday and finished the week down.
Meanwhile, Oil surged back above $110 per barrel after the European Union announced plans to stop buying Russian oil and gas gradually.
Stocks are likely to remain volatile, especially with an update on inflation next week. Economists expect inflation for April to come below the 8.5% print of March, which may signal inflation has peaked and provide much-needed relief to equity markets.
This Week’s Selection
Our stock pick for week 19 of 2022 is CVX (Chevron Corp.).
Chevron just closed back above its 20-day and 50-day moving averages, and both RSI and MACD have room to support another leg up for the stock.
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.
Learn more about our trading strategy here.
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.