The sentiment is bearish as the annual low for the year, October 27th, approaches. This combination of sentiment and seasonality is bullish. Expect higher prices into yearend.
To select some stocks for short-term trades, the following strategy is employed. The best-performing stocks in the coming week with at least 20 years of price data are calculated and are presented below. The stocks are ranked by the percentage of time periods in which the stock rose. Quanta Services (PWR) is first, having risen 82.61% of the time in this week. The return has been 2.36% and the expected return (the product of the first two numbers) is 1.95%. The stock has been trading for 23 years.
Best Performing S&P 500 Stocks from October 22nd through 29th
From this list, the stocks are screened for relative strength and by dynamic cycles. The latter term refers to the most active cycles that are generating profits now. Quanta Services has strong relative strength. The daily price cycle bottoms on Monday. Nine of the last ten buy signals have been profitable. The shares are likely to break $120 resistance and move closer to $125.
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Valero is in the strong energy sector. On the daily graph, we see higher lows in momentum and rising relative strength. The daily cycle is rising. It has been profitable on daily buy signals in nine of the last eleven cases over the last year. The share price is likely to overcome $85 resistance and move to the higher 80s.