My Weekly Stock pick for Week 24 of 2022 (June 6 - 10)
Dear subscribers,
Welcome to My Weekly Stock pick #24 of 2022.
Summary
My Weekly Stock is our stock-picking strategy delivering more than 400% cumulative returns since 2019 and 19% so far in 2022.
Last week, our stock selection was down 4.7%.
Our stock pick for week 24 of 2022 is XOM (Exxon Mobil).
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 (IBM) was down 4.7%, which adds up to a +19% performance so far in 2022.
Access here our performance tracking
Market Outlook
The equity markets were down for the week, with the SP500 losing 5.1%, the Dow Jones 4.6%, and the NASDAQ 5.7%. It was again a very frustrating week for investors. Like many times this year, the equity indexes traded in a range, trapping both bulls and bears, before finally losing support and selling off hard on Friday. The SP500 declined in 9 of the past 10 weeks.
A worst-than-expected inflation report has upped the expectations of a faster-tightening cycle by the FED. The 10-Year rate increased significantly and closed at 3.17%.
With the technical and momentum indicators again bearish, the SP500 seems poised to retest its 2022 low and may this time officially enter into a bear market. The Fed meeting and its rate decision on Wednesday will give us more clues about the market direction in the next few weeks.
This Week’s Selection
Our stock pick for week 24 of 2022 is XOM (Exxon Mobil). Last week, the stock made a new high before paring gains with the end-of-week selloff. Energy is the only positive sector this year.
Our confidence level is LOW. The trading environment remains very challenging, so we urge you to proceed cautiously, 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.