My Weekly Stock pick for Week 50 of 2022 (Dec. 12-16)
Dear subscribers,
Welcome to My Weekly Stock pick #50 of 2022.
Summary
My Weekly Stock is our stock-picking strategy delivering more than 300% cumulative returns since 2019 and +11% in 2022.
Last week, our stock selection was down 0.9%.
Our stock pick for week 50 of 2022 is Merck & Co. (MRK).
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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 S&P500. Our weekly stock picks delivered a cumulative return of 300%, 5x the performance of the S&P500 since 2019.
Last week, our stock pick (MRK) was down 0.9%, adding to a +11% performance in 2022.
Access here our performance tracking
Market Outlook
The equity markets fell last week, with the S&P 500, Dow Jones, and NASDAQ all falling by 3.4%, 2.8%, and 3.6%, respectively.
The decreases were mainly the result of a higher-than-expected reading on wholesale price inflation and uncertainty about the economic impact of the FED's aggressive rate hikes. Technical factors may have also contributed to the fall as the S&P 500 struggled to stay above the critical 200-day moving average.
The consumer price index (CPI) report on Tuesday and the Federal Reserve's rate decision and commentary on Wednesday will almost certainly determine if the rally from the October low still has legs.
This Week’s Selection
Our stock pick for week 50 of 2022 is Merck & Co. (MRK).
Our confidence level is Medium
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.