Weekly Trading Update #1 (Jan 2)
The only stocks you need to watch this week, hand-picked by my proprietary algorithm.
Dear subscribers,
We have a new week ahead of us, and that means it's time for my Weekly Trading Update! And as this is the first newsletter of the year, I would like to take this opportunity to wish you a happy, healthy and successful new year!
All of my trading is derived from the proprietary algorithm and research I have developed analyzing various technical and momentum indicators over the years.
JP Morgan Chase & Co. (JPM) is my stock pick for this week, a leading company within the Financial sector, trading less than 1% from its 1-year peak. Since 2019, my momentum picks have returned more than 400%.
Stay tuned to learn more about how my trading strategies work and my performance. And, as always, happy investing!
SPONSOR
This week’s edition is brought to you by TrendSpider !
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Creating and back-testing trading strategies.
Stock scanning.
Automated trading signals and alerts.
The platform has so many more features, and I have only scratched the surface of its potential. Learn more about TrendSpider and see the difference for yourself!
WEEKLY MOMENTUM PICK
My Approach
I use a proprietary algorithm to collect momentum indicators for each company on my watchlist, such as performance over the last one and three months and the current price vs. their respective 52-week high and low. I then rank the stocks based on each indicator, assigning a score from highest to lowest, and the stock with the highest average score becomes my pick for the week.
From there, I developed a simple trading principle: I buy one stock on Monday at the market open and sell it by Friday's close. I focus on the 30 stocks from the Dow Jones (+ Alphabet). Because the strategy rewards winners, it is usual for the algorithm to select the same stock for multiple weeks in a row.
My Performance
Since 2019, my stock picks have consistently generated strong returns, both in absolute terms and compared to the S&P 500 index. The cumulative return on my weekly momentum picks has been 406% since 2019 (when traded with stop-loss), outperforming the S&P 500 by x5.
Last week, my stock pick was down by 0.9%, bringing my performance in 2023 to 10% when trading with a 2% stop-loss and 6% profit target.
My Momentum Pick for This Week
My stock pick for week #1 of 2024 is JP Morgan Chase & Co. (JPM). The stock is demonstrating strong momentum, rising 10% in the past month and 17% in the past quarter, and is now trading less than 1% from its 52-week high. That makes JPM the stock with the best momentum profile on my watchlist.
I use a 2% stop-loss and a 6% profit target. Stop-losses are critical elements of any trading plan, particularly in periods of market volatility.
Confidence Level: HIGH
Momentum Conditions: Positive | Algo Score: 90
The confidence level is a qualitative assessment based on my own experience trading these stock picks. Best performing picks typically involves supportive broader market conditions and an algo score below 94, meaning the stock has still room to run further up. It can be a valuable tool to size a position.
WRAP UP
As we conclude this week's update, I hope you've found value in learning more about my trading approach. And, while I provide the compass, the journey is yours to undertake!
I look forward to sharing my stock picks with you next week.
Happy investing!
My Weekly Stock
DISCLAIMER
Please be aware that I currently have, or may initiate, a position in the stocks mentioned in this article. This disclosure is made for transparency purposes and should not be taken as a recommendation to buy or sell any securities.
The information provided in this newsletter is for informational purposes only and should not be taken as financial advice. Any investments or decisions made based on the information provided in this newsletter are the reader's sole responsibility. We recommend that readers conduct their own research and consult a qualified financial professional before making investment decisions. The author does not assume any responsibility for any losses or damages arising from using the information provided in this newsletter.
Off to great start. Thanks as always!