Dow Stock Recommendations for Volatile Month
Here are some Dow stock recommendations for this volatile month.
It is often said that October is the most volatile month on the stock market. While this may be true, it is also worth noting that the market has historically tended to close on the upside in October, despite any big one-day declines that may occur during the month. When we analyze October market behavior in the context of election years and decennial cycles, we can see that the probability of the market being higher at the end of the month is actually quite high. This means that, despite any short-term volatility, investors can feel confident that the market will rebound and end the month on a positive note.
Looking back at the data, we can see that October has been a month of transition in recent years.
As we enter into the second year of the election cycle, 61.8% of Americans are feeling hopeful about the future. This is a significant increase from the previous year, when only 49.
Looking at the decennial pattern, it is clear that there is a significant increase in the percentage of people over the age of 30.
Looking at the data, it's clear that the election cycle has a major impact on the stock market.
Looking at the DJIA stocks this month, it's clear that the long trades are outperforming the short sales and the market overall. This trend has been consistent for the last 32 months, with long stocks rising by 60% more than short sales, and 31% more than the DJIA. This is good news for investors looking to hold onto their stocks for the long term.
For this month, the cycle/relative strength concept is applied. First, the Dow Jones 30 stocks are ranked from the best performer to the worst by calculating the expected return in that month. The top stocks were screened as follows. The top best traditional performers in the month were then screened for relative strength by a unique measure that sorts by several relevant time periods. Those that pass both screens are buys for the month. The stocks that are both weak monthly performers and weak relative performers are short sales for the month. This strategy is a sound way to approach the market, as it takes into account both the overall market trends and the specific strength of individual stocks. By ranking stocks according to their expected return and then screening for relative strength, investors can identify the best opportunities for both buying and selling.
The seasonal screen for the month is presented below, showing the top and bottom-ranked stocks. This new screen combines the seasonal rank for October in column two with the relative strength rank in column three. The combined rank is in the last column. We can see that Johnson and Johnson is ranked second and sixth respectively, and number one overall. This indicates that the stock is a good choice for investors looking for a strong seasonal performer.
There are a few stocks that have the potential to be the strongest performers in the Dow Jones Industrial Average (DJIA) in the month ahead.
The potential weakest performers in the DJIA stocks in the month are those that are currently underperforming and have little room to continue doing so. These stocks may be at risk of further declines, which could put pressure on the overall index.
The market looks set to have a volatile month, with falls in the first half of the month offset by gains in the second half. Ultimately, the market looks set to finish the month on a positive note.
Of the strongest stocks out there, these stocks show strong relative strength and are considered buys for the month. So if you're looking for a strong stock to buy, these are some of the best options available.
Apple Inc. (AAPL) shares have been on a tear lately, propelled by strong earnings and optimism about the iPhone 8 launch later this year.
Looking to the future, Johnson & Johnson remains committed to its core values of integrity and accountability, while also continuing to innovate and bring new products and services to market that improve
The Coca Cola company is one of the most well-known and successful businesses in the world.
The future of travel is exciting and uncertain.
United Health is one of the largest healthcare companies in the world, providing a wide range of services to patients and families.
As stocks continue to decline, these weak stocks are becoming good short sales. They have declining relative strength and are not likely to recover soon.
I have a vision for Boeing that involves the company continuing to be a leader in the aerospace industry.
Dow
As one of the largest telecommunications companies in the world, Verizon is a major player in both the consumer and business markets.
As a leading provider of technological innovation, Intel is at the forefront of developing new and exciting ways to improve the way we live and work.
The JP Morgan company is a financial institution that has been in existence for over 200 years.
