My Weekly Stock pick for Week 22 of 2022 (May 31 - June 3)
Dear subscribers,
Welcome to My Weekly Stock pick #22 of 2022.
Summary
My Weekly Stock is our stock-picking strategy delivering more than 400% cumulative returns since 2019 and 27% so far in 2022.
Last week, our stock selection was down 0.5%.
Our stock pick for week 22 of 2022 is CVX (Chevron).
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 0.5%, which adds up to a +27% performance so far in 2022.
Access here our performance tracking
Market Outlook
The equity markets were up for the week, with the SP500 gaining 6.6%, the Dow Jones 6.2%, and the NASDAQ 6.8%. The Dow Jones finally broke its 8-week losing streak, the longest since 1923. Strong earnings from retail stocks and a slowing inflation report lifted the market. The Personal Consumption Expenditures (PCE) index for April increased 4.9% year-over-year, in line with expectations but a deceleration vs. the 5.3% in March. The PCE index is one of the inflation data most watched by the Fed.
After weeks of bearish sentiment and technicals, the markets were due for a bounce. We will need more follow-through to confirm if we have seen the bottom or if this is just a bear-market rally.
This Week’s Selection
Our stock pick for week 22 of 2022 is CVX (Chevron). After consolidating for the most of April and May, the stock seems ready to take off for another leg up.
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
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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.