My Weekly Stock pick for Week 36 of 2022 (Sep 5 - 9)
Dear subscribers,
Welcome to My Weekly Stock pick #36 of 2022.
Summary
My Weekly Stock is our stock-picking strategy delivering more than 300% cumulative returns since 2019 and 2% in 2022.
Last week, our stock selection was down 3.7%.
Our stock pick for week 35 of 2022 is Amgen Inc. (AMGN).
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 300%, 5x the performance of the SP500 since 2019.
Last week, our stock pick (UNH) was down 3.7%, adding to a +2% performance 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 3.0%, and the NASDAQ 4.0%. The S&P 500 decreased for a third consecutive week as markets reacted negatively to last week's hawkish comments from the Fed chairman. The market participants still anticipate a 75-basis-point increase in the FED meeting in September, and the labor report did little to ease investors' concerns that the Fed would soften its stance.
Technical indicators are primarily bearish for the SP500, pointing to more pain ahead. In addition, we entered the weakest month of the year for stocks. Until we see a significant multi-day rally and recapture the previously-lost levels (4,000, the 50-day moving average, and ultimately the 200-day), we should assume that we are not through with this sell-off.
This Week’s Selection
Our stock pick for week 36 of 2022 is Amgen Inc. (AMGN).
Our confidence level is LOW. With the high volatility and again another late-Friday selloff, I will size down my investment next week to protect my capital.
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.
like the company for the dividend