Weekly Trading Update #24 (Jun 10)

The only stocks you need to watch this week, hand-picked by my proprietary algorithm

Dear subscribers,

Welcome back to My Weekly Stock, where we blend in-depth market analysis with proven momentum-based trading strategies. My mission? Help you navigate the markets with unbiased, data-driven insights that you can act on.

As we head into a new week, it's time for my Weekly Trading Update! Stay tuned to learn more about how my trading strategies work and my performance.

Let’s get started!

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THIS WEEK’S SNAPSHOT

• Momentum Outlook: The S&P500 hit a new all-time high last week, but we have one of the most critical weeks of the year just ahead with two inflation updates and the Fed meeting.

• Weekly Momentum Pick: Apple (AAPL) is my stock pick for this week, a leading company within the Technology sector, trading less than 2% from its 1-year high. Since 2019, my momentum picks have returned more than 400%.

• Swing Trade Portfolio: 63% of my portfolio is invested across 17 positions. Alphabet (GOOG, +18%) and Nvidia (NVDA, +35%) are the best 2 performers. Since its inception in October 2023, my Swing Trade Portfolio has returned 27%.

Trading Week Reflection:

My trading portfolio is also back at a record high, finally recovering from the April pullback. The Q1 rally was broad-based, at one point I had 20+ positions and 94% of my cash invested. This time around, I have remained below 70% cash invested. In particular, cyclical sectors have been lagging, and most setups we have seen in May have failed.

This reinforces how important it is to build a well-diversified watchlist. In my case, I divide my watchlist into three sections: 1) Tech/Growth, 2) Cyclicals & Energy, and 3) Defensive sectors (Healthcare, Financials, Consumer Defensive). This strategy enables me to benefit in almost every trading environment.

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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, the algorithm usually selects 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 +461% since 2019 (when traded with stop-loss), outperforming the S&P 500 by 4x.

My stock pick was up 0.6% last week, bringing my 2024 performance to 12%.

My Momentum Pick for This Week

My stock pick for week #24 of 2024 is Apple (AAPL). The stock has risen 8% in the past month and 15% in the past quarter and is now trading less than 2% from its 52-week high. That makes AAPL 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: Strong | Algo Score: 87

The confidence level is a qualitative assessment based on my experience trading these stock picks. Best-performing picks typically involve 1) supportive broader market conditions and 2) an algo score below 94, meaning the stock has room to run further.

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That’s it for the free part of my Weekly Trading Update.

I hope you enjoyed my analysis so far. If you’d like to see more in-depth insights, subscribe to the paid version and get complete access to my short and long-term portfolios!

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