Stock Pick Update: February 19 – February 25, 2020

Here are our stock picks for the Wednesday, February 19 – Tuesday, February 25 period.

The Stock Pick Update for the Wednesday, February 11 – Tuesday, February 18, 2020 period resulted in a modest loss of 0.22%. The S&P 500 index has lost just 0.01% in the same period. So our stock picks were relatively slightly weaker than the broad stock market. However, our average long result was better than the broad stock market’s gauge.

Our last week’s short stock picks weren’t profitable, as they worsened our overall result, but the stock market has entered a period of short-term uncertainty following recent rally. If stocks were in a more prolonged downward correction, being able to profit anyway, would be extremely valuable. Of course, it’s not the point of our Stock Pick Updates to forecast where the general stock market is likely to move, but rather to provide you with stocks that are likely to generate profits regardless of what the S&P does.

This means that our overall stock-picking performance can be summarized on the chart below. The assumptions are: starting with $100k, no leverage used. The data before Dec 24, 2019 comes from our internal tests and data after that can be verified by individual Stock Pick Updates posted on our website.

Below we include statistics and the details of our three recent updates:

  • Feb 18, 2020
    Long Picks (Feb 11 open – Feb 18 close % change): PSX (-2.96%), DD (+1.00%), PNC (-2.96%), NRG (+2.83%), EXR (+3.66%)
    Short Picks (Feb 11 open – Feb 18 close % change): NEE (+3.91%), PLD (+1.76%), AMD (+4.33%), PXD (-2.28%), DOW (-3.92%)
    Average long result: +0.32%, average short result: -0.76%
    Total profit (average): -0.22%
  • Feb 11, 2020
    Long Picks (Feb 5 open – Feb 11 close % change): PSX (-0.11%), MS (+1.68%), DD (-1.09%), PEG (-1.98%), NTAP (+3.59%)
    Short Picks (Feb 5 open – Feb 11 close % change): ETR (+1.93%), NOW (-2.72%), PEAK (+0.69%), HAL (-2.07%), STT (+0.91%)
    Average long result: +0.42%, average short result: +0.29%
    Total profit (average): +0.36%
  • Feb 4, 2020
    Long Picks (Jan 29 open – Feb 4 close % change): SLB (-0.67%), VMC (+2.26%), WFC (-0.34%), CNP (+0.72%), CTSH (+0.94%)
    Short Picks (Jan 29 open – Feb 4 close % change): ATO +0.78%), AAPL (-1.73%), PEAK (-0.11%), KMI (+0.28%, ex div. -$0.25), NEM (-0.16%)
    Average long result: +0.58%, average short result: +0.19%
    Total profit (average): +0.39%

The broad stock market has reached historically high levels recently. The breathtaking correction in December of 2018 was followed by the record-breaking comeback rally. The late October – early November breakout led to another leg higher, as the S&P 500 index broke above 3,300 mark. But will the rally continue? If the market goes higher, which stocks are going to beat the index? And if it reverses down from here, which stocks are about to outperform on the short side?

We will provide stock trading ideas based on our in-depth technical and fundamental analysis, but since the main point of this publication is to provide the top 5 long and top 5 short candidates (our opinion, not an investment advice) for this week, we will focus solely on the technicals. The latter are simply more useful in case of short-term trades.

We will assume the following: the stocks will be bought or sold short on the opening of today’s trading session (February 19) and sold or bought back on the closing of the next Tuesday’s trading session (February 25).

First, we will take a look at the recent performance by sector. It may show us which sector is likely to perform best in the near future and which sector is likely to lag. Then, we will select our buy and sell stock picks.

There are eleven stock market sectors: Energy, Materials, Industrials, Consumer Discretionary, Consumer Staples, Health Care, Financials, Technology, Communications Services, Utilities and Real Estate. They are further divided into industries, but we will just stick with these main sectors of the stock market.

We will analyze them and their relative performance by looking at the Select Sector SPDR ETF’s.

Let’s start with our first charts (charts courtesy of www.stockcharts.com).

There’s S&P 500’s 30-minute chart along with market sector indicators for the past month. The S&P 500 index has gained 1.62% since January 17. The strongest sector was the Utilities XLU, as it gained 7.06%. The Real Estate XLRE gained 5.84% and the Technology XLK gained 5.29%.

On the other hand, the weakest sector was the Energy XLE, as it lost 9.06%. The Health Care XLV lost 0.89% and the Materials XLB lost 0.84%.

Based on the above, we decided to choose our stock picks for the next week. We will choose our top 3 long and top 3 short candidates using a contrarian approach, and top 2 long and top 2 short candidates using trend-following approach:

Contrarian approach (betting against the recent trend):

  • buys: 1 x Energy, 1 x Health Care, 1 x Materials
  • sells: 1 x Utilities, 1 x Real Estate, 1 x Technology

Trend-following approach:

  • buys: 1 x Utilities, 1 x Real Estate
  • sells: 1 x Energy, 1 x Health Care

Contrarian approach

Top 3 Buy Candidates

XEC Climarex Energy Co. – Energy

  • Declining wedge pattern – potential upward reversal
  • Technically oversold – short-term correction play
  • Potential resistance level of $42-44

BSX Boston Scientific Corp. – Health Care

  • The price remains above support level of $41.5-42.0
  • Potential breakout above month-long downward trend line
  • Potential resistance level of $43.5-44.5 (upside profit target level)

NUE Nucor Corp. – Materials

  • Potential breakout above declining wedge pattern
  • Positive technical divergences
  • The price bounces off support level of $47

Summing up, the above contrarian long stock picks are just a part of our whole Stock Pick Update. The Energy, Materials and Health Care sectors were the weakest since January 17. So that part of our ten long and short stock picks is meant to outperform in the coming days if the broad stock market acts in a different way than before.

We hope you enjoyed reading the above free analysis, and we encourage you to read today’s Stock Pick Update – this analysis’ full version. There, we include the remaining long and short stock picks for the next week. There’s no risk in subscribing right away, because there’s a 30-day money back guarantee for all our products, so we encourage you to subscribe today.

Check more of our free articles on our website – just drop by and have a look. We encourage you to sign up for our daily newsletter, too – it’s free and if you don’t like it, you can unsubscribe with just 2 clicks. If you sign up today, you’ll also get 7 days of free access to our premium daily Gold & Silver Trading Alerts. Sign up for the free newsletter today!

Thank you.

Paul Rejczak
Stock Trading Strategist
Sunshine Profits – Effective Investments through Diligence and Care


Disclaimer

All essays, research and information found above represent analyses and opinions of Paul Rejczak and Sunshine Profits’ associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Paul Rejczak and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Rejczak is not a Registered Securities Advisor. By reading Paul Rejczak’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Paul Rejczak, Sunshine Profits’ employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

Gold Daily News: Wednesday, February 19

The yellow metal broke above February 3 local high and $1,600 level, but it closed slightly below January 8 high of $1,613.30. Investors keep buying the safe-haven asset despite record-breaking stock market and rising U.S. dollar.

The recent China virus fears didn’t scare risk-on assets’ investors, however gold kept extending its short-term uptrend. This morning it gains 0.1%. What about the other precious metals? Silver gained 2.35% on Tuesday, as it got close to January local highs. The price is now above $18 mark and it’s 0.2% higher this morning. Platinum gained 2.59% on Tuesday, and today it is gaining 1.3%. The metal is back above $1,000 mark again. Palladium accelerated the uptrend yesterday, as it gained 7.81%. Today, it is gaining additional 6.1%.

The financial markets will now wait for this week’s most important economic data release – we will get the FOMC Meeting Minutes at 2:00 p.m. Take a look at our Monday’s Market News Report to find out more!

Check more of our free articles on our website – just drop by and have a look. We encourage you to sign up for our daily newsletter, too – it’s free and if you don’t like it, you can unsubscribe with just 2 clicks. If you sign up today, you’ll also get 7 days of free access to our premium daily Gold & Silver Trading Alerts. Sign up for the free newsletter today!

Thank you.

Paul Rejczak
Stock Trading Strategist
Sunshine Profits – Effective Investments through Diligence and Care


Disclaimer

All essays, research and information found above represent analyses and opinions of Paul Rejczak and Sunshine Profits’ associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Paul Rejczak and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Rejczak is not a Registered Securities Advisor. By reading Paul Rejczak’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Paul Rejczak, Sunshine Profits’ employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

Gold Daily News: Tuesday, February 18

The yellow metal got close to resistance level of $1,600 again, as it reached daily high of $1,588.20. Yesterday, the price of gold went even higher retracing more of its early February downturn, but it is still slightly below February 3 high of $1,598.50.

The recent China virus fears didn’t scare risk-on assets’ investors, however gold extended its short-term uptrend. This morning it is gaining 0.4%. What about the other precious metals? Silver gained 0.65% on Friday, as it retraced more of the recent decline. It is trading 0.6% higher this morning. Platinum lost 0.61%, and today it is 1.0% higher. Palladium lost 1.46% on Friday, as it bounced off its record highs. This morning it is gaining 0.6%.

The financial markets are digesting today’s much worse-than-expected German ZEW Economic Sentiment number release. We also got an overnight profit warning from Apple and stock markets are declining. Investors will also wait for the Empire State Manufacturing Index release at 8:30 a.m. But the most important piece of economic data release this week will be Wednesday’s FOMC Meeting Minutes. Take a look at our yesterday’s Market News Report to find out more!

Check more of our free articles on our website – just drop by and have a look. We encourage you to sign up for our daily newsletter, too – it’s free and if you don’t like it, you can unsubscribe with just 2 clicks. If you sign up today, you’ll also get 7 days of free access to our premium daily Gold & Silver Trading Alerts. Sign up for the free newsletter today!

Thank you.

Paul Rejczak
Stock Trading Strategist
Sunshine Profits – Effective Investments through Diligence and Care


Disclaimer

All essays, research and information found above represent analyses and opinions of Paul Rejczak and Sunshine Profits’ associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Paul Rejczak and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Rejczak is not a Registered Securities Advisor. By reading Paul Rejczak’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Paul Rejczak, Sunshine Profits’ employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

Market News Report: February 17, 2020 – February 21, 2020

The financial markets continued trading in a risk-on mode last week, as China virus fears were easing and economic data was supporting Fed’s easy monetary policy.

The week behind

The coronavirus fears have almost disappeared last week, as investors’ sentiment has been improving following the record-breaking U.S. stock market rally. Tuesday’s-Wednesday’s Testimony from the Fed’s Jerome Powell reassured global financial markets that easy monetary policy will be continued in the future. And we highlighted it in our last week’s Market News Report. Thursday’s Consumer Price Index came in as expected, so inflation remains very low. However, Friday’s Retail Sales number wasn’t that good. And the price of gold remained within a short-term uptrend last week.

The week ahead

What about the coming week? Probably the most important piece of economic data will be Wednesday’s FOMC Meeting Minutes release. Investors will get detailed insights regarding FOMC’s stance on monetary policy. We will also have series of quite important economic data releases from U.S. and the Eurozone. Be sure to check them out in the coming days. Let’s take a look at key highlights:

  • Wednesday’s FOMC Meeting Minutes will be the most important economic data release this week.
  • We will also get series of other quite important U.S. economic data announcements – Empire State Manufacturing Index on Tuesday, Producer Price Index, Housing Starts, Building Permits on Wednesday, Philly Fed Manufacturing Index on Thursday, and the Flash Manufacturing PMI, Flash Services PMI releases on Friday.
  • There will also be important economic data releases in the Eurozone – on Tuesday we will get the German ZEW Economic Sentiment, on Thursday the ECB Monetary Policy Meeting Accounts will be released and on Friday we will get PMI numbers from Germany and France, among others.
  • The currency traders will surely have to focus on this week’s economic data releases from Australia, Canada and the U.K.

You will find this week’s the key news releases below (EST time zone). For your convenience, we broken them down per market to which they are particularly important, so that you know what to pay extra attention to, if you have or plan to have positions in one of them. Moreover, we put the particularly important news in bold. This kind of news is what is more likely to trigger volatile movements.

The news that are not in bold usually don’t result in bigger intraday moves, so unless one is engaging in a particularly active form of day trading, it might be best to focus on the news that we put in bold. Of course, you are free to use the below indications as you see fit. As far as we are concerned, we are usually not engaging in any day trading during days with “bold” events on a given market. However, in case of more medium-term trades, we usually choose to be aware of the increased intraday volatility, but not change the currently opened position.

Our Market News Report consists of two different time-related perspectives. The investors’ perspective is only suitable for the long-term investments. The single economic data releases rarely cause major outlook changes. Hence, we will only see a handful of bold markings every week. On the other hand, the traders’ perspective is for traders and day-traders, because the assets’ prices are likely to react on a single piece of economic data. So, there will be a lot more bold markings on potentially market-moving news every week.

Investors’ Perspective

Gold, Silver, and Mining Stocks

Monday, February 17

  • All Day, U.S. – Bank Holiday – Washington’s Birthday

Tuesday, February 18

  • 8:30 a.m. U.S. – Empire State Manufacturing Index

Wednesday, February 19

  • 8:30 a.m. U.S. – PPI m/m, Core PPI m/m, Housing Starts, Building Permits
  • 2:00 p.m. U.S. – FOMC Meeting Minutes

Thursday, February 20

  • 8:30 a.m. U.S. – Philly Fed Manufacturing Index

Friday, February 21

  • 9:45 a.m. U.S. – Flash Manufacturing PMI

Crude Oil

Monday, February 17

  • All Day, U.S. – Bank Holiday – Washington’s Birthday

Tuesday, February 18

  • 8:30 a.m. U.S. – Empire State Manufacturing Index

Wednesday, February 19

  • 8:30 a.m. U.S. – PPI m/m, Core PPI m/m, Housing Starts, Building Permits
  • 2:00 p.m. U.S. – FOMC Meeting Minutes
  • 4:30 p.m. U.S. – API Weekly Crude Oil Stock

Thursday, February 20

  • 8:30 a.m. U.S. – Philly Fed Manufacturing Index
  • 11:00 a.m. U.S. – Crude Oil Inventories

Friday, February 21

  • 9:45 a.m. U.S. – Flash Manufacturing PMI

Stock Markets

Monday, February 17

  • All Day, U.S. – Bank Holiday – Washington’s Birthday

Tuesday, February 18

  • 5:00 a.m. Eurozone – German ZEW Economic Sentiment
  • 8:30 a.m. U.S. – Empire State Manufacturing Index

Wednesday, February 19

  • 8:30 a.m. U.S. – PPI m/m, Core PPI m/m, Housing Starts, Building Permits
  • 2:00 p.m. U.S. – FOMC Meeting Minutes

Thursday, February 20

  • 8:30 a.m. U.S. – Philly Fed Manufacturing Index

Friday, February 21

  • 3:15 a.m. Eurozone – French Flash Services PMI
  • 3:30 a.m. Eurozone – German Flash Manufacturing PMI, German Flash Services PMI
  • 9:45 a.m. U.S. – Flash Manufacturing PMI, Flash Services PMI
  • 10:00 a.m. U.S. – Existing Home Sales

EUR/USD

Monday, February 17

  • Tentative, Eurozone – German Buba Monthly Report
  • All Day, Eurozone – Eurogroup Meetings
  • All Day, U.S. – Bank Holiday – Washington’s Birthday

Tuesday, February 18

  • 5:00 a.m. Eurozone – German ZEW Economic Sentiment, ZEW Economic Sentiment
  • 8:30 a.m. U.S. – Empire State Manufacturing Index
  • All Day, Eurozone – ECOFIN Meetings

Wednesday, February 19

  • 8:30 a.m. U.S. – PPI m/m, Core PPI m/m, Housing Starts, Building Permits
  • 2:00 p.m. U.S. – FOMC Meeting Minutes

Thursday, February 20

  • 7:30 a.m. Eurozone – ECB Monetary Policy Meeting Accounts
  • 8:30 a.m. U.S. – Philly Fed Manufacturing Index

Friday, February 21

  • 3:15 a.m. Eurozone – French Flash Services PMI, French Flash Manufacturing PMI
  • 3:30 a.m. Eurozone – German Flash Manufacturing PMI, German Flash Services PMI
  • 9:45 a.m. U.S. – Flash Manufacturing PMI, Flash Services PMI
  • 10:00 a.m. U.S. – Existing Home Sales

USD/JPY

Monday, February 17

  • All Day, U.S. – Bank Holiday – Washington’s Birthday

Wednesday, February 19

  • 8:30 a.m. U.S. – PPI m/m, Core PPI m/m, Housing Starts, Building Permits
  • 2:00 p.m. U.S. – FOMC Meeting Minutes

Thursday, February 20

  • 6:30 p.m. Japan – National Core CPI y/y
  • 7:30 p.m. Japan – Flash Manufacturing PMI
  • 11:30 p.m. Japan – All Industries Activity m/m

GBP/USD

Monday, February 17

  • All Day, U.S. – Bank Holiday – Washington’s Birthday

Wednesday, February 19

  • 4:30 a.m. U.K. – CPI y/y
  • 8:30 a.m. U.S. – PPI m/m, Core PPI m/m, Housing Starts, Building Permits
  • 2:00 p.m. U.S. – FOMC Meeting Minutes

Thursday, February 20

  • 4:30 a.m. U.K. – Retail Sales m/m
  • 8:30 a.m. U.S. – Philly Fed Manufacturing Index

Friday, February 21

  • 4:30 a.m. U.K. – Flash Manufacturing PMI, Flash Services PMI

USD/CAD

Monday, February 17

  • All Day, U.S. – Bank Holiday – Washington’s Birthday
  • All Day, Canada – Holiday – Family Day

Wednesday, February 19

  • 8:30 a.m. U.S. – PPI m/m, Core PPI m/m, Housing Starts, Building Permits
  • 8:30 a.m. Canada – CPI m/m
  • 2:00 p.m. U.S. – FOMC Meeting Minutes

Thursday, February 20

  • 8:30 a.m. Canada – ADP Non-Farm Employment Change

Friday, February 21

  • 8:30 a.m. Canada – Retail Sales m/m, Core Retail Sales m/m
  • 9:45 a.m. U.S. – Flash Manufacturing PMI, Flash Services PMI

AUD/USD

Monday, February 17

  • 7:30 p.m. Australia – Monetary Policy Meeting Minutes
  • All Day, U.S. – Bank Holiday – Washington’s Birthday

Tuesday, February 18

  • 7:30 p.m. Australia – Wage Price Index q/q

Wednesday, February 19

  • 8:30 a.m. U.S. – PPI m/m, Core PPI m/m, Housing Starts, Building Permits
  • 2:00 p.m. U.S. – FOMC Meeting Minutes
  • 7:30 p.m. Australia – Employment Change, Unemployment Rate

Thursday, February 20

  • 8:30 a.m. U.S. – Philly Fed Manufacturing Index
  • 5:00 p.m. Australia – Flash Manufacturing PMI, Flash Services PMI

Summing up, if you’re an investor and not a trader, you should pay extra attention to the mentioned Wednesday’s FOMC Meeting Minutes release. Plus, there will be important economic data releases from Australia, Canada and the U.K. in the coming week.

We hope you enjoyed reading the above free analysis, and we encourage you to read today’s Market News Report – this analysis’ full version. The full Alert includes also the Traders’ Perspective which is very useful for the people who trade within shorter time frames. There’s no risk in subscribing right away, because there’s a 30-day money back guarantee for all our products, so we encourage you to subscribe today.

Check more of our free articles on our website – just drop by and have a look. We encourage you to sign up for our daily newsletter, too – it’s free and if you don’t like it, you can unsubscribe with just 2 clicks. If you sign up today, you’ll also get 7 days of free access to our premium daily Gold & Silver Trading Alerts. Sign up for the free newsletter today!

Thank you.

Paul Rejczak
Stock Trading Strategist
Sunshine Profits – Effective Investments through Diligence and Care


Disclaimer

All essays, research and information found above represent analyses and opinions of Paul Rejczak and Sunshine Profits’ associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Paul Rejczak and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Rejczak is not a Registered Securities Advisor. By reading Paul Rejczak’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Paul Rejczak, Sunshine Profits’ employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

Gold Daily News: Thursday, February 13

Investors reacted to the Fed’ Jerome Powell’s Testimony again. The market is extending a month-long consolidation following January 8 run-up to new medium-term high of $1,613.30.

The gold is 0.5% higher this morning, as China virus fears re-appear again following some negative overnight news about virus case count revision. The market is above its Tuesday’s-Wednesday’s daily highs. What about the other precious metals? Silver lost 0.57% on Wednesday, as it extended its short-term downtrend. But it is currently 0.9% higher. Platinum lost 0.64%, and right now it is 0.4% higher. Palladium gained 2.51% yesterday, as it retraced its recent decline. This morning it is down 0.5%.

The financial markets will be waiting for the U.S. Consumer Price Index release at 8:30 a.m. It will be one of the most important economic data announcements this week. And we highlighted it our Monday’s Market News Report.

Check more of our free articles on our website – just drop by and have a look. We encourage you to sign up for our daily newsletter, too – it’s free and if you don’t like it, you can unsubscribe with just 2 clicks. If you sign up today, you’ll also get 7 days of free access to our premium daily Gold & Silver Trading Alerts. Sign up for the free newsletter today!

Thank you.

Paul Rejczak
Stock Trading Strategist
Sunshine Profits – Effective Investments through Diligence and Care


Disclaimer

All essays, research and information found above represent analyses and opinions of Paul Rejczak and Sunshine Profits’ associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Paul Rejczak and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Rejczak is not a Registered Securities Advisor. By reading Paul Rejczak’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Paul Rejczak, Sunshine Profits’ employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

Gold Daily News: Wednesday, February 12

Investors reacted to the Fed’ Jerome Powell’s Testimony yesterday. The market continues to trade within a month-long consolidation following January 8 run-up to new medium-term high of $1,613.30.

The gold is 0.2% lower, as risk-on assets are gaining this morning. The market trades along yesterday’s local lows. What about the other precious metals? Silver lost 1.06% on Tuesday, as it retraced more of its recent advance. It is currently 0.6% lower. Platinum gained 0.68%, and right now it is 0.8% lower. Palladium gained 0.71% on Tuesday, as it fluctuated following last week’s Thursday’s sell-off. This morning it is down 0.4%.

The financial markets will be waiting for another day of the mentioned Jerome Powell’s Testimony at 10:00 a.m. We highlighted it as the important economic event of this week in our yesterday’s Market News Report.

Check more of our free articles on our website – just drop by and have a look. We encourage you to sign up for our daily newsletter, too – it’s free and if you don’t like it, you can unsubscribe with just 2 clicks. If you sign up today, you’ll also get 7 days of free access to our premium daily Gold & Silver Trading Alerts. Sign up for the free newsletter today!

Thank you.

Paul Rejczak
Stock Trading Strategist
Sunshine Profits – Effective Investments through Diligence and Care


Disclaimer

All essays, research and information found above represent analyses and opinions of Paul Rejczak and Sunshine Profits’ associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Paul Rejczak and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Rejczak is not a Registered Securities Advisor. By reading Paul Rejczak’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Paul Rejczak, Sunshine Profits’ employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

Gold Daily News: Tuesday, February 11

The market has retraced more of last week’s Tuesday’s decline following bouncing off $1,550 support level. Overall, gold continues to trade within a month-long consolidation after the early January rally over $1,600 mark.

The price of gold is down 0.2% this morning, as investors await the Fed’s Jerome Powell Testimony at 10:00 a.m., among other factors. The market has retrtaced some of yesterday’s advance. What about the other precious metals? Silver gained 0.53% on Monday, as it extended its short-term consolidation after bouncing from $17.50 support level. It is currently 0.3% lower. Platinum lost 0.2% on Monday, and right now it is up 0.4%. Palladium gained 1.87% yesterday, as it retraced some of last week’s Thursday’s sell-off. However, it is down 1.1% this morning.

The financial markets will be waiting for the mentioned Jerome Powell’s Testimony at 10:00 a.m. We highlighted it as the important economic event of this week in our yesterday’s Market News Report. There will also be a speech from the ECB President Lagarde at 9:00 a.m.

Check more of our free articles on our website – just drop by and have a look. We encourage you to sign up for our daily newsletter, too – it’s free and if you don’t like it, you can unsubscribe with just 2 clicks. If you sign up today, you’ll also get 7 days of free access to our premium daily Gold & Silver Trading Alerts. Sign up for the free newsletter today!

Thank you.

Paul Rejczak
Stock Trading Strategist
Sunshine Profits – Effective Investments through Diligence and Care


Disclaimer

All essays, research and information found above represent analyses and opinions of Paul Rejczak and Sunshine Profits’ associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Paul Rejczak and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Rejczak is not a Registered Securities Advisor. By reading Paul Rejczak’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Paul Rejczak, Sunshine Profits’ employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

Market News Report: February 10, 2020 – February 14, 2020

This week we will have a lot of Fed talk and another pretty important set of economic data releases. Let’s take a look at the details.

The week behind

The corona virus fears eased last week, as financial markets reacted to better-than-expected economic data releases, U.S. quarterly corporate earnings. Overall, we’ve seen a risk-on trading action. The stock market has reached new record highs, but gold fluctuated following recent advances. Friday’s Nonfarm Payrolls, Unemployment Rate were the most important economic data releases of the week. However, they were pretty much mixed and the markets were going sideways.

Let’s take a look at 30-minute chart of the S&P 500 futures contract. The market was advancing following Friday’s Nonfarm Payrolls release, but then it has quickly reversed lower. However, we didn’t see that much of changes. And later in the day stocks were declining ahead of weekend’s pause and some China virus uncertainty:

The week ahead

What about the coming week? We will have a lot of so-called Fed talk this week, including Tuesday’s-Wednesday’s Testimony from Powell. Then the markets will be focusing on two important economic data releases: Thursday’s CPI and Friday’s Retail Sales number. On Tuesday we will get the GDP number in the U.K. Investors will continue to react to quarterly earnings releases. Let’s take a look at key highlights:

  • Friday’s U.S. Retail Sales number will be the most important economic data release this week.
  • We will also have Jerome Powell’s Testimony on Tuesday and Wednesday.
  • The U.S. Consumer Price Index will be released on Thursday.
  • Tuesday’s U.K. GDP number release will be important for the British Pound currency pairs.
  • There will also be some quarterly corporate earnings releases this week.

You will find this week’s the key news releases below (EST time zone). For your convenience, we broken them down per market to which they are particularly important, so that you know what to pay extra attention to, if you have or plan to have positions in one of them. Moreover, we put the particularly important news in bold. This kind of news is what is more likely to trigger volatile movements.

The news that are not in bold usually don’t result in bigger intraday moves, so unless one is engaging in a particularly active form of day trading, it might be best to focus on the news that we put in bold. Of course, you are free to use the below indications as you see fit. As far as we are concerned, we are usually not engaging in any day trading during days with “bold” events on a given market. However, in case of more medium-term trades, we usually choose to be aware of the increased intraday volatility, but not change the currently opened position.

Our Market News Report consists of two different time-related perspectives. The investors’ perspective is only suitable for the long-term investments. The single economic data releases rarely cause major outlook changes. Hence, we will only see a handful of bold markings every week. On the other hand, the traders’ perspective is for traders and day-traders, because the assets’ prices are likely to react on a single piece of economic data. So, there will be a lot more bold markings on potentially market-moving news every week.

Investors’ Perspective

Gold, Silver, and Mining Stocks

Tuesday, February 11

  • 10:00 a.m. U.S. – Fed Chair Powell Testimony

Wednesday, February 12

  • 10:00 a.m. U.S. – Fed Chair Powell Testimony

Thursday, February 13

  • 8:30 a.m. U.S. – CPI m/m, Core CPI m/m, Unemployment Claims

Friday, February 14

  • 8:30 a.m. U.S. – Retail Sales m/m, Core Retail Sales m/m

Crude Oil

Tuesday, February 11

  • 10:00 a.m. U.S. – Fed Chair Powell Testimony
  • 4:30 p.m. U.S. – API Weekly Crude Oil Stock

Wednesday, February 12

  • 10:00 a.m. U.S. – Fed Chair Powell Testimony
  • 10:30 a.m. U.S. – Crude Oil Inventories

Thursday, February 13

  • 8:30 a.m. U.S. – CPI m/m, Core CPI m/m, Unemployment Claims

Friday, February 14

  • 8:30 a.m. U.S. – Retail Sales m/m, Core Retail Sales m/m

Stock Markets

Tuesday, February 11

  • 10:00 a.m. U.S. – Fed Chair Powell Testimony

Wednesday, February 12

  • 10:00 a.m. U.S. – Fed Chair Powell Testimony
  • After Close U.S. – CSCO Quarterly Earnings

Thursday, February 13

  • 8:30 a.m. U.S. – CPI m/m, Core CPI m/m, Unemployment Claims
  • After Close U.S. – NVDA Quarterly Earnings

Friday, February 14

  • 8:30 a.m. U.S. – Retail Sales m/m, Core Retail Sales m/m, Import Prices m/m
  • 9:15 a.m. U.S. – Industrial Production m/m, Capacity Utilization Rate

EUR/USD

Tuesday, February 11

  • 9:00 a.m. Eurozone – ECB President Lagarde Speech
  • 10:00 a.m. U.S. – Fed Chair Powell Testimony

Wednesday, February 12

  • 10:00 a.m. U.S. – Fed Chair Powell Testimony

Thursday, February 13

  • 8:30 a.m. U.S. – CPI m/m, Core CPI m/m

Friday, February 14

  • 2:00 a.m. Eurozone – German Preliminary GDP q/q
  • 5:00 a.m. Eurozone – Trade Balance, Flash GDP q/q, Flash Employment Change q/q
  • 8:30 a.m. U.S. – Retail Sales m/m, Core Retail Sales m/m

USD/JPY

Tuesday, February 11

  • 10:00 a.m. U.S. – Fed Chair Powell Testimony
  • All Day, Japan – Bank Holiday

Wednesday, February 12

  • 10:00 a.m. U.S. – Fed Chair Powell Testimony

Thursday, February 13

  • 8:30 a.m. U.S. – CPI m/m, Core CPI m/m

Friday, February 14

  • 8:30 a.m. U.S. – Retail Sales m/m, Core Retail Sales m/m

GBP/USD

Tuesday, February 11

  • 4:30 a.m. U.K. – GDP q/q
  • 10:00 a.m. U.S. – Fed Chair Powell Testimony
  • 10:35 a.m. U.K. – BOE Governor Carney Speech

Wednesday, February 12

  • 10:00 a.m. U.S. – Fed Chair Powell Testimony

Friday, February 14

  • 8:30 a.m. U.S. – Retail Sales m/m, Core Retail Sales m/m

USD/CAD

Tuesday, February 11

  • 10:00 a.m. U.S. – Fed Chair Powell Testimony

Wednesday, February 12

  • 10:00 a.m. U.S. – Fed Chair Powell Testimony

Thursday, February 13

  • 8:30 a.m. U.S. – CPI m/m, Core CPI m/m

Friday, February 14

  • 8:30 a.m. U.S. – Retail Sales m/m, Core Retail Sales m/m
  • 9:15 a.m. U.S. – Industrial Production m/m, Capacity Utilization Rate

AUD/USD

Tuesday, February 11

  • 10:00 a.m. U.S. – Fed Chair Powell Testimony

Wednesday, February 12

  • 10:00 a.m. U.S. – Fed Chair Powell Testimony
  • 7:15 p.m. Australia – RBA Governor Lowe Speech

Thursday, February 13

  • 8:30 a.m. U.S. – CPI m/m, Core CPI m/m

Friday, February 14

  • 8:30 a.m. U.S. – Retail Sales m/m, Core Retail Sales m/m

We hope you enjoyed reading the above free analysis, and we encourage you to read today’s Market News Report – this analysis’ full version. The full Alert includes also the Traders’ Perspective which is very useful for the people who trade within shorter time frames. There’s no risk in subscribing right away, because there’s a 30-day money back guarantee for all our products, so we encourage you to subscribe today.

Check more of our free articles on our website – just drop by and have a look. We encourage you to sign up for our daily newsletter, too – it’s free and if you don’t like it, you can unsubscribe with just 2 clicks. If you sign up today, you’ll also get 7 days of free access to our premium daily Gold & Silver Trading Alerts. Sign up for the free newsletter today!

Thank you.

Paul Rejczak
Stock Trading Strategist
Sunshine Profits – Effective Investments through Diligence and Care


Disclaimer

All essays, research and information found above represent analyses and opinions of Paul Rejczak and Sunshine Profits’ associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Paul Rejczak and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Rejczak is not a Registered Securities Advisor. By reading Paul Rejczak’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Paul Rejczak, Sunshine Profits’ employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

Gold Daily News: Monday, February 10

The market has retraced some more of Tuesday’s decline following bouncing off $1,550 support level on Wednesday. Overall, gold continues to trade within a month-long consolidation following the early January rally over $1,600 mark.

This morning, gold is 0.1% higher, as it basically continues going sideways. What about the other precious metals? Silver lost 0.71% on Friday, as it remained within a short-term consolidation after bouncing of $17.50 support level. It is currently 0.5% higher. Platinum gained 0.2% on Friday, and right now it is up 0.5%. Palladium lost 1.21% on Friday, as it extended its short-term sell-off after reaching close to the record high again. But it is 2.80% higher this morning.

The financial markets are still looking at China virus crisis developments. But the sentiment improved following last week’s record-breaking U.S. stock market’s rally. There will be no new important economic data releases today. However, the markets will await some FOMC Members speeches.

Check more of our free articles on our website – just drop by and have a look. We encourage you to sign up for our daily newsletter, too – it’s free and if you don’t like it, you can unsubscribe with just 2 clicks. If you sign up today, you’ll also get 7 days of free access to our premium daily Gold & Silver Trading Alerts. Sign up for the free newsletter today!

Thank you.

Paul Rejczak
Stock Trading Strategist
Sunshine Profits – Effective Investments through Diligence and Care


Disclaimer

All essays, research and information found above represent analyses and opinions of Paul Rejczak and Sunshine Profits’ associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Paul Rejczak and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Rejczak is not a Registered Securities Advisor. By reading Paul Rejczak’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Paul Rejczak, Sunshine Profits’ employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

Gold Daily News: Thursday, February 6

The yellow metal was gaining despite stock market’s rally following better-than-expected economic data releases. The sentiment towards risk-on assets much improved, as corona virus fears eased a bit.

Gold is currently gaining 0.6%, as it is retracing more of the mentioned Tuesday’s decline. It is the highest since Tuesday’s early morning. What about the other precious metals? Silver gained 0.23% yesterday, as it continued to fluctuate following Monday’s sell-off. It is gaining 1.0% this morning. Platinum gained 2.2% on Wednesday, but it remained within a short-term consolidation following recent declines. It is down 0.7% at this moment. Palladium lost 0.4% yesterday, after getting back to $2,400 mark. The market fell by over 4% from its intraday high. This morning, it is down another 1.3%.

The financial markets are still looking at China virus crisis developments. However, the sentiment much improved following the record-breaking U.S. stock market’s rally. The markets will wait for today’s economic data releases: Preliminary Nonfarm Productivity, Preliminary Unit Labor Costs, Unemployment Claims. Investors will surely await tomorrow’s Nonfarm Payrolls release. Where would the price of gold go following the NFP news? Take a look at our Monday’s Market News Report to find some clue.

Check more of our free articles on our website – just drop by and have a look. We encourage you to sign up for our daily newsletter, too – it’s free and if you don’t like it, you can unsubscribe with just 2 clicks. If you sign up today, you’ll also get 7 days of free access to our premium daily Gold & Silver Trading Alerts. Sign up for the free newsletter today!

Thank you.

Paul Rejczak
Stock Trading Strategist
Sunshine Profits – Effective Investments through Diligence and Care


Disclaimer

All essays, research and information found above represent analyses and opinions of Paul Rejczak and Sunshine Profits’ associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Paul Rejczak and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Rejczak is not a Registered Securities Advisor. By reading Paul Rejczak’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Paul Rejczak, Sunshine Profits’ employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

Gold Daily News: Tuesday, February 4

The market has reached new local high of $1,598.50. But then it bounced off the $1,600-1,615 resistance level, marked by January 8 medium-term high of $1,613.30 and reached daily low of $1,573.20. The price of gold continues to trade along last week’s local highs.

Gold is currently down 0.5%, trading below yesterday’s low, as investors’ sentiment improves ahead of the U.S. stock market open at 9:30 a.m. What about the other precious metals? Silver lost 1.9% yesterday, as it retraced its recent advance again. The short-term volatility remains relatively high.

It is currently up 0.2%. Platinum gained 0.9% on Monday and today it is up another 0.9%. However, the market remains below $1,000 mark following mid-January downward reversal. Palladium gained 0.4% yesterday and today it is gaining 3.1%, as it is retracing some of the recent decline off its new record high.

The financial markets are still looking at China virus crisis developments. However, the sentiment has further improved since Friday’s risk-on assets’ selloff. The markets will await today’s Factory Orders number release at 10:00 a.m., and then at 8:45 p.m. we will get the Chinese Caixin Services PMI release. Investors will surely wait for this week’s Friday’s Nonfarm Payrolls release. Where would the price of gold go following the NFP news? Take a look at our Monday’s Market News Report to find some clue.

Check more of our free articles on our website – just drop by and have a look. We encourage you to sign up for our daily newsletter, too – it’s free and if you don’t like it, you can unsubscribe with just 2 clicks. If you sign up today, you’ll also get 7 days of free access to our premium daily Gold & Silver Trading Alerts. Sign up for the free newsletter today!

Thank you.

Paul Rejczak
Stock Trading Strategist
Sunshine Profits – Effective Investments through Diligence and Care


Disclaimer

All essays, research and information found above represent analyses and opinions of Paul Rejczak and Sunshine Profits’ associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Paul Rejczak and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Rejczak is not a Registered Securities Advisor. By reading Paul Rejczak’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Paul Rejczak, Sunshine Profits’ employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

Gold Daily News: Monday, February 3

The market went sideways despite the intensifying China virus crisis on Friday. However, it reached the new local high of $1,595.50 before giving back gains. The market remained below the resistance level of $1,600-1,615, marked by January 8 medium-term high of $1,613.30.

Gold is currently down 0.6%, as the virus crisis fears ease a bit this morning. What about the other precious metals? Silver gained 0.1% on Friday following Thursday’s rally of around 3%. And now it is declining by 1.25%. Platinum lost 1.9% on Friday and it is currently 0.2% lower. The market goes further off the $1,000 mark following mid-January downward reversal. Palladium gained 0.4% on Friday, but it continues to trade within a short-term consolidation after reversing its recent uptrend on January 23. It is 0.3% down.

The financial markets are still looking at the China virus crisis developments. However, the sentiment has slightly improved since Friday’s intensification. Overall, precious metals take a little breather today, as volatility is dropping. The markets will wait for today’s ISM Manufacturing PMI release at 10:00 p.m. It is supposed to be the most important economic data market mover today. But we will also get Google’s quarterly earnings release today after the stock market’s close. And last week’s better-than-expected Amazon’s release has managed to push the price of gold lower in the short-term. Investors will surely wait for this week’s Friday’s Nonfarm Payrolls release. Where would the price of gold go following the NFP news? Take a look at our today’s Market News Report to find some clue.

Check more of our free articles on our website – just drop by and have a look. We encourage you to sign up for our daily newsletter, too – it’s free and if you don’t like it, you can unsubscribe with just 2 clicks. If you sign up today, you’ll also get 7 days of free access to our premium daily Gold & Silver Trading Alerts. Sign up for the free newsletter today!

Thank you.

Paul Rejczak
Stock Trading Strategist
Sunshine Profits – Effective Investments through Diligence and Care


Disclaimer

All essays, research and information found above represent analyses and opinions of Paul Rejczak and Sunshine Profits’ associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Paul Rejczak and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Rejczak is not a Registered Securities Advisor. By reading Paul Rejczak’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Paul Rejczak, Sunshine Profits’ employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

Gold Daily News: Thursday, January 30

So the FOMC Monetary Policy Statement release didn’t bring much volatility. On last week’s Wednesday gold has bounced off $1,550 level, and since then it gained almost 2.5%. This week, the price of gold is drifting lower from Monday’s local high of $1,588.40. The market has retraced some of its move lower from the January 8 medium-term high.

Gold is currently 0.2% higher, as it continues to trade within a short-term consolidation following the recent advance. What about the other precious metals? Silver gained 0.2% yesterday, so it basically fluctuated following Tuesday’s sell-off. It is currently 1.2% higher, as it retraces some of the mentioned decline. The platinum is 0.2% lower, as it continues to trade below $1,000 mark. The palladium is 0.4% down. That metal has retraced just some of its recent sell-off from new record highs.

The financial markets are watching the China virus crisis developments again. The stock market sentiment has worsened, but gold doesn’t react on it. Investors will wait for today’s U.S. Advance GDP number release at 8:30. Will it be a game-changer? Probably not, because the profit-taking action following quarterly earnings releases shows that bullish news may be already priced in.

Check more of our free articles on our website – just drop by and have a look. We encourage you to sign up for our daily newsletter, too – it’s free and if you don’t like it, you can unsubscribe with just 2 clicks. If you sign up today, you’ll also get 7 days of free access to our premium daily Gold & Silver Trading Alerts. Sign up for the free newsletter today!

Thank you.

Paul Rejczak
Stock Trading Strategist
Sunshine Profits – Effective Investments through Diligence and Care


Disclaimer

All essays, research and information found above represent analyses and opinions of Paul Rejczak and Sunshine Profits’ associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Paul Rejczak and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Rejczak is not a Registered Securities Advisor. By reading Paul Rejczak’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Paul Rejczak, Sunshine Profits’ employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

Gold Daily News: Wednesday, January 29

The financial markets reacted to better-than-expected U.S. economic data releases (Durable Goods Orders, CB Consumer Confidence) and China virus fears somewhat eased yesterday. On last week’s Wednesday gold has bounced off $1,550 level, and since then it gained almost 2.5%. The market trades within a short-term uptrend as it is still retracing some of its move lower from the January 8 medium-term high.

The gold price is currently 0.3% higher, as it retraces some of yesterday’s decline. Overall, it remains within a consolidation following the recent advances. What about the other precious metals? The silver sold off yesterday, as it fell 3.31% and it got further away from the $18 mark. Silver is currently 0.3% higher. The platinum remained slightly below $1,000 mark yesterday, as it gained 0.33%. On the other hand, palladium gained 2.73%. However, that metal has retraced just some of its recent sell-off from new record highs.

The financial markets are focusing less on the mentioned China virus crisis and much more on today’s FOMC Monetary Policy Statement release at 2:00 p.m. There will likely be a big increase in volatility on the financial markets. Where would the price of gold go following the FOMC news? Take a look at our Monday’s Market News Report to find some clue.

Check more of our free articles on our website – just drop by and have a look. We encourage you to sign up for our daily newsletter, too – it’s free and if you don’t like it, you can unsubscribe with just 2 clicks. If you sign up today, you’ll also get 7 days of free access to our premium daily Gold & Silver Trading Alerts. Sign up for the free newsletter today!

Thank you.

Paul Rejczak
Stock Trading Strategist
Sunshine Profits – Effective Investments through Diligence and Care


Disclaimer

All essays, research and information found above represent analyses and opinions of Paul Rejczak and Sunshine Profits’ associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Paul Rejczak and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Rejczak is not a Registered Securities Advisor. By reading Paul Rejczak’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Paul Rejczak, Sunshine Profits’ employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

Gold Daily News: Tuesday, January 28

Gold continued to gain following China virus fears, among other factors. On Wednesday gold has bounced off $1,550 level, and since then it gained almost 2.5%. The market trades within a short-term uptrend as it is still retracing some of its move lower from the January 8 medium-term high.

The gold price is currently 0.2% lower, as the market fluctuates following yesterday’s intraday downward reversal. What about the other precious metals? The silver retraced some of its recent advance, but it continues to trade above $18 mark. It is currently 0.4% lower. The platinum got back below $1,000 mark on Friday, as it fell more than 1%. It is currently trading 0.4% up. The palladium regains some of its strength, as it trades 1.6% higher this morning.

The financial markets continue to focuse on the mentioned China virus crisis. But investors will wait for the important U.S. Consumer Confidence number release today at 10:00 a.m. There will also be the Durable Goods Orders release at 8:30 a.m. But all the attention is being focused tomorrow’s FOMC Monetary Policy Statement. Where would the price of gold go following the FOMC day? Take a look at our Monday’s Market News Report to find some clue.

Check more of our free articles on our website – just drop by and have a look. We encourage you to sign up for our daily newsletter, too – it’s free and if you don’t like it, you can unsubscribe with just 2 clicks. If you sign up today, you’ll also get 7 days of free access to our premium daily Gold & Silver Trading Alerts. Sign up for the free newsletter today!

Thank you.

Paul Rejczak
Stock Trading Strategist
Sunshine Profits – Effective Investments through Diligence and Care


Disclaimer

All essays, research and information found above represent analyses and opinions of Paul Rejczak and Sunshine Profits’ associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Paul Rejczak and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Rejczak is not a Registered Securities Advisor. By reading Paul Rejczak’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Paul Rejczak, Sunshine Profits’ employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

Stock Pick Update: January 22 – January 28, 2020

The Stock Pick Update for the Thursday, January 15 – Tuesday, January 21, 2020 period resulted in a gain of 0.63%. The S&P 500 index has gained 1.17% in the same period. However, our long stock picks have gained 3.87%. Unfortunately, short stock picks lost 2.61%, as the broad stock market rallied to new record highs. Just imagine what advantage we would have when stocks enter a more prolonged downward correction!

Below we include statistics and the details of the previous updates. Only the updates for week-long periods ending on December 24, January 14 and January 21 are verified by the alert’s release on our website, but before we decided to make it available to you, we tested our approach and our stock picks performed very well:

  • Jan 21, 2020

Long Picks: DD, CINF, CHD, CSCO, CTL
Short Picks: AMD, FB, IRM, SHW, COF
Average long result: +3.87%, average short result: -2.61%

Total profit (average): +0.63%

  • Jan 14, 2020

Long Picks: VTR, COST, ECL, COG, CSCO
Short Picks: PXD, AMD, VFC, AVB, PEP
Average long result: +1.42%, average short result: +0.79%

Total profit (average): +1.10%

  • Jan 7, 2020

Long Picks: GD, CHRW, CTL, CLX, CSCO
Short Picks: PM, ANSS, HST, JCI, EA
Average long result: -1.15%, average short result: +0.97%

Total profit (average): -0.09%

  • Dec 24, 2019

Long Picks: VTR, CHRW, CF, IDXX, CINF
Short Picks: LLY, MS, AES, DRE, AME
Average long result: +1.12%, average short result: -1.31%
Total profit (average): -0.10%

  • Dec 17, 2019

Long Picks: WMT, FAST, SEE, ZTS, SLB
Short Picks: BMY, PSX, SST, LW, EMR

Average long result: +2.45%, average short result: -1.69%
Total profit (average): +0.38%

  • Dec 10, 2019

Long Picks: PSA, OXY, DE, ILMN, TTWO
Short Picks: ZTS, DIS, LW, WELL, PSX

Average long result: +0.87%, average short result: +1.30%

Total profit (average): +1.08%

  • Dec 03, 2019

Long Picks: PSA, EXC, FANG, ILMN, FLT
Short Picks: ABBV, NVDA, CHTR, WELL, AEP

Average long result: -0.03%, average short result: +1.55%
Total profit (average): +0.76%

  • Nov 26, 2019

Long Picks: VTR, YUM, HAL, ADI, CME
Short Picks: MSFT, JPM, ABT, WELL, LOW

Average long result: +1.89%, average short result: -0.50%
Total profit (average): +0.69%

  • Nov 19, 2019

Long Picks: PSA, DUK, EBAY, MMC, MMM
Short Picks: C, CAT, TXN, PLD, SO
Average long result: 1.08%, average short result: -1.50%
Total profit (average): -0.21%

The broad stock market has reached historically high levels recently. Last year’s breathtaking December correction was followed by the record-breaking comeback rally. The late October – early November breakout led to another leg higher, as the S&P 500 index broke got close to the 3,300 mark. But will the rally continue? If the market goes higher, which stocks are going to beat the index? And if it reverses down from here, which stocks are about to outperform on the short side?

We will provide stock trading ideas based on our in-depth technical and fundamental analysis, but since the main point of this publication is to provide the top 5 long and top 5 short candidates (our opinion, not an investment advice) for this week, we will focus solely on the technicals. The latter are simply more useful in case of short-term trades.

We will assume the following: the stocks will be bought or sold short on the opening of today’s trading session (January 2) and sold or bought back on the closing of the next Tuesday’s trading session (January 7).

First, we will take a look at the recent performance by sector. It may show us which sector is likely to perform best in the near future and which sector is likely to lag. Then, we will select our buy and sell stock picks.

There are eleven stock market sectors: Energy, Materials, Industrials, Consumer Discretionary, Consumer Staples, Health Care, Financials, Technology, Communications Services, Utilities and Real Estate. They are further divided into industries, but we will just stick with these main sectors of the stock market.

We will analyze them and their relative performance by looking at the Select Sector SPDR ETF’s.

www.stockcharts.com

There’s S&P 500’s 30-minute chart along with market sector indicators for the past month. The S&P 500 index has gained 3.60% since December 20. The strongest sector was the Technology XLK, as it gained 7.38%. The Communication Services XLC gained 5.39% and the Real Estate XLRE gained 5.30%.

On the other hand, the weakest sector was the Energy XLE, as it lost 1.61%. The Materials XLB lost 0.13%, and the Financials XLF gained just 0.38%.

Based on the above, we decided to choose our stock picks for the next week. We will choose our top 3 long and top 3 short candidates using a contrarian approach, and top 2 long and top 2 short candidates using the trend-following approach:

Contrarian approach (betting against the recent trend):

  • buys: 1 x Energy, 1 x Materials, 1 x Financials
  • sells: 1 x Technology, 1 x Communication Services, 1 x Real Estate

Trend-following approach:

  • buys: 1 x Technology, 1 x Communication Services
  • sells: 1 x Energy, 1 x Materials

Contrarian approach

Top 3 Buy Candidates

HFC HollyFrontier Corp. – Energy

The HFC stock has extended its medium-term downtrend yesterday. But we can see some potential declining wedge bottoming pattern here. The support level is at around $45-46. On the other hand, resistance level is at $48-49.

DD DuPont de Nemours, Inc. – Materials

The DD stock is our long stock pick again. It has been relatively weak in the recent weeks following breaking below the early December local low. However, its short-term trading action is still quite bullish and we expect an upward correction. Potential resistance level is at $64-65.

BEN Franklin Resources, Inc. – Financials

The Franklin Resources, Inc. stock broke above its recent downward trend line on Thursday. We could see an attempt at retracing more of its November’s decline. The resistance level is at around $26.00, among others.

We hope you enjoyed reading the above free analysis, and we encourage you to read today’s Stock Pick Update – this analysis’ full version. There, we include the remaining long and short stock picks for the next week. There’s no risk in subscribing right away, because there’s a 30-day money back guarantee for all our products, so we encourage you to subscribe today.

Check more of our free articles on our website – just drop by and have a look. We encourage you to sign up for our daily newsletter, too – it’s free and if you don’t like it, you can unsubscribe with just 2 clicks. If you sign up today, you’ll also get 7 days of free access to our premium daily Gold & Silver Trading Alerts. Sign up for the free newsletter today!

Thank you.

Paul Rejczak
Stock Trading Strategist
Sunshine Profits – Effective Investments through Diligence and Care


Disclaimer

All essays, research and information found above represent analyses and opinions of Paul Rejczak and Sunshine Profits’ associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Paul Rejczak and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Rejczak is not a Registered Securities Advisor. By reading Paul Rejczak’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Paul Rejczak, Sunshine Profits’ employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

Gold Daily News: Wednesday, January 22

However, the market got close to the $1,570 level yesterday, before getting back below the resistance level of $1,560.

The gold price has been trading within an almost two-week long consolidation. despite the overall short-term risk-on action on the financial markets following last Wednesday’s U.S. and China Phase One trade deal signing. The gold is currently 0.1% lower, so it is extending the consolidation.

What about the other precious metals? The silver was relatively weaker than gold, as it failed to break above the last week’s Friday’s local high. Consequently, yesterday it fell 1.47% following bouncing off the resistance level of $18.00-18.20. Right now, it is 0.6% lower. The price of platinum trades within a range of $1,000-1,020 per ounce as it gains 0.2%. On the other hand, palladium gains 1.2%, however it remains much below yesterday’s new record high.

Today, the financial markets will continue to focus on the World Economic Forum in Davos. We will also have some quite important economic data releases from Australia and Canada.

Check more of our free articles on our website – just drop by and have a look. We encourage you to sign up for our daily newsletter, too – it’s free and if you don’t like it, you can unsubscribe with just 2 clicks. If you sign up today, you’ll also get 7 days of free access to our premium daily Gold & Silver Trading Alerts. Sign up for the free newsletter today!

Thank you.

Paul Rejczak
Stock Trading Strategist
Sunshine Profits – Effective Investments through Diligence and Care


Disclaimer

All essays, research and information found above represent analyses and opinions of Paul Rejczak and Sunshine Profits’ associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Paul Rejczak and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Rejczak is not a Registered Securities Advisor. By reading Paul Rejczak’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Paul Rejczak, Sunshine Profits’ employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

10 Economic Trends That Will Shape the U.S. and Gold Market in 2020

In today’s article, we’ll present the macroeconomic outlook for 2020 and you’ll learn whether the fundamentals are likely to become more or less friendly toward gold in 2020.

What will 2020 be like? Well, as a leap year, it will be for sure longer than 2019, but the rest is a mystery. However, let’s point out a few important trends that will shape the U.S. economy and the gold market this year.

  1. Inflation should remain subdued.
  2. The same applies to GDP growth, although global growth could bottom out.
  3. The Fed will be in a wait-and-see mode, but with a dovish bias.
  4. The ECB and the BoJ will remain accommodative.
  5. U.S. dollar should stay strong.
  6. The U.S. fiscal policy will remain easy.
  7. Trade wars will be softer with a phase one trade deal signed.
  8. The uncertainty regarding Brexit should also diminish, as Conservatives won a majority in December parliamentary election.
  9. Thus, investors could increase their appetite for risky assets.
  10. Bond yields have room to move higher in 2020.

We will analyze them for you now, as we believe that investors need a clear guide to navigate through choppy waters of our turbulent economy. Without a broader fundamental perspective, it’s easy to drown in the sea of conflicting and exaggerated headlines.

First, inflation should remain subdued, as low inflation is not transitory but more of a permanent phenomenon due to global competition, technological progress, and disruptors such as Amazon or Uber.

Second, the U.S. GDP growth is expected to slow down, falling from 2.4 percent in 2019 to 2.1 percent in 2020, according to the IMF, or even below 2 percent, according to other forecasters. However, with eased trade disputes and global growth possibly bottoming out, the U.S. economic growth could surprise on the upside.

Third, given subdued inflation, the Fed is unlikely to hike the federal funds rate in 2020. The latest dot-plot suggests a pause this year, which would imply a more hawkish stance than in 2019 when we witnessed three interest rate cuts. However, the possible economic slowdown or even more serious economic developments, could prompt the U.S. central bank to take some dovish actions.

Fourth, both the European Central Bank and Bank of Japan will remain accommodative. So, even if the Fed pauses this year, it will be more hawkish than other major central banks, which should support the US dollar at the expense of gold. The growth, while anemic, will also be higher in the U.S. than in other G7 countries.

Fifth, as far the U.S. economy outperforms its major peers, even if it marks the slowdown, the greenback should remain strong, exerting some downward pressure on the yellow metal.

Sixth, the U.S. fiscal policy will stay accommodative. The fiscal deficit is forecasted to increase from $1,092 to $1,101 billion. However, relative to GDP, the fiscal deficit is expected to decrease from 5.2 to 4.8 percent, according to the presidential projections. Abstracting from details, the fiscal stance will remain similar to the last year’s.

Seventh, as the U.S. and China have reached a preliminary agreement in their long-running trade dispute, the worries about the full-blown trade war should ease, and confidence could return to the markets.

Eight, the Conservative party secured a large majority in the December UK Parliamentary elections. It means that Brexit will likely occur by the end of January. No matter how one views Brexit, the great uncertainty is now removed and businesses can implement their investment plans once again.

Ninth, as two big geopolitical headwinds receded somewhat, investors’ risk appetite could increase, so they will probably allocate more funds into equities, at the expense of gold and other safe-haven assets.

Tenth, indeed, if investors increase their appetite for risky assets, they will shift their funds from the Treasuries into the stock market. Lower demand due to eased recession fears and higher supply due to higher fiscal deficit could drive down the bond prices, increasing their yields. Higher interest rates would be negative for gold prices. As the chart below shows, the price of gold peaked in 2019 when the 10-year Treasury yields bottomed out. So, if the yields increase further, gold should continue its downward trend.

Chart 1: Gold prices (yellow line, left axis, London P.M. Fix, in $) and nominal yields on 10-year US Treasury (red line, right axis, in %) from January to December 2019.

The above trends are, unfortunately, not very supportive for gold prices. The fiscal policy will be similarly easy, while the monetary policy will be more hawkish than in 2019, supporting the U.S. dollar. The geopolitical headwinds have softened, which should support the risky assets and bond yields. So, we could see strong dollar, higher real interest rates and lower risk aversion – a very bad combination for the price of gold. Hence, from the fundamental point of view, 2020 may be a worse year for gold than 2019. Unless, of course, something really bad happens, such as for example, the next economic crisis arrives.

If you enjoyed the above analysis and would you like to know more about the fundamentals of the gold market, we invite you to read the January Market Overview report. If you’re interested in the detailed price analysis and price projections with targets, we invite you to sign up for our Gold & Silver Trading Alerts. If you’re not ready to subscribe yet and are not on our gold mailing list yet, we urge you to sign up. It’s free and if you don’t like it, you can easily unsubscribe. Sign up today!

Thank you.

Paul Rejczak
Stock Trading Strategist
Sunshine Profits – Effective Investments through Diligence and Care


Disclaimer

All essays, research and information found above represent analyses and opinions of Paul Rejczak and Sunshine Profits’ associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Paul Rejczak and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Rejczak is not a Registered Securities Advisor. By reading Paul Rejczak’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Paul Rejczak, Sunshine Profits’ employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

Gold Daily News: Thursday, January 16

Yesterday’s U.S. and China Phase One trade deal signing ceremony brought a lot of attention, but little has happened in gold and silver. However, we saw big movements in platinum and palladium. The first broke sharply above $1,000 mark as it gained almost 4% and the latter has reached yet another new record high nearing $2,200 mark.

Right now, the price of gold is flat and silver is retracing some of yesterday’s advance. On the other hand, both platinum and palladium extend their short-term gains this morning.

Today, the markets will await the U.S. Retail Sales number. It is supposed to be the most important piece of economic data this week. But that’s not all. At 8:30 a.m. we will also get the Philly Fed Manufacturing Index and just before that, at 7:30 the European Central Bank will release its Monetary Policy Meeting Accounts. Then, the ECB President Lagarde will speak at 1:00 p.m. Last but not least, at 9:00 p.m. there will be China’s GDP number release.

Check more of our free articles on our website – just drop by and have a look. We encourage you to sign up for our daily newsletter, too – it’s free and if you don’t like it, you can unsubscribe with just 2 clicks. If you sign up today, you’ll also get 7 days of free access to our premium daily Gold & Silver Trading Alerts. Sign up for the free newsletter today!

Thank you.
Paul Rejczak
Stock Trading Strategist
Sunshine Profits – Effective Investments through Diligence and Care


Stock Pick Update: January 15 – January 21, 2020

The Stock Pick Update for the Thursday, January 8 – Tuesday, January 14, 2020 period resulted in a gain of 1.10%. The S&P 500 index has gained 1.38% in the same period. However, our long stock picks have gained 1.42%. The short stock picks have also been profitable despite the broad stock market’s record breaking advances!

Below we include statistics and the details of the previous updates. Only the updates for week-long periods ending on December 24 and January 14 are verified by the alert’s release on our website, but before we decided to make it available to you, we tested our approach and our stock picks performed very well:

• Jan 14, 2020
Long Picks: VTR, COST, ECL, COG, CSCO
Short Picks: PXD, AMD, VFC, AVB, PEP
Average long result: +1.42%, average short result: +0.79%
Total profit (average): +1.10%

• Jan 7, 2020
Long Picks: GD, CHRW, CTL, CLX, CSCO
Short Picks: PM, ANSS, HST, JCI, EA
Average long result: -1.15%, average short result: +0.97%
Total profit (average): -0.09%

• Dec 24, 2019
Long Picks: VTR, CHRW, CF, IDXX, CINF
Short Picks: LLY, MS, AES, DRE, AME
Average long result: +1.12%, average short result: -1.31%
Total profit (average): -0.10%

• Dec 17, 2019
Long Picks: WMT, FAST, SEE, ZTS, SLB
Short Picks: BMY, PSX, SST, LW, EMR
Average long result: +2.45%, average short result: -1.69%
Total profit (average): +0.38%

• Dec 10, 2019
Long Picks: PSA, OXY, DE, ILMN, TTWO
Short Picks: ZTS, DIS, LW, WELL, PSX
Average long result: +0.87%, average short result: +1.30%
Total profit (average): +1.08%

• Dec 03, 2019
Long Picks: PSA, EXC, FANG, ILMN, FLT
Short Picks: ABBV, NVDA, CHTR, WELL, AEP
Average long result: -0.03%, average short result: +1.55%
Total profit (average): +0.76%

• Nov 26, 2019
Long Picks: VTR, YUM, HAL, ADI, CME
Short Picks: MSFT, JPM, ABT, WELL, LOW
Average long result: +1.89%, average short result: -0.50%
Total profit (average): +0.69%

• Nov 19, 2019
Long Picks: PSA, DUK, EBAY, MMC, MMM
Short Picks: C, CAT, TXN, PLD, SO
Average long result: 1.08%, average short result: -1.50%
Total profit (average): -0.21%

The broad stock market has reached historically high levels recently. Last year’s breathtaking December correction was followed by the record-breaking comeback rally. The late October – early November breakout led to another leg higher, as the S&P 500 index broke got close to the 3,300 mark. But will the rally continue? If the market goes higher, which stocks are going to beat the index? And if it reverses down from here, which stocks are about to outperform on the short side?

We will provide stock trading ideas based on our in-depth technical and fundamental analysis, but since the main point of this publication is to provide the top 5 long and top 5 short candidates (our opinion, not an investment advice) for this week, we will focus solely on the technicals. The latter are simply more useful in case of short-term trades.

We will assume the following: the stocks will be bought or sold short on the opening of today’s trading session (January 2) and sold or bought back on the closing of the next Tuesday’s trading session (January 7).

First, we will take a look at the recent performance by sector. It may show us which sector is likely to perform best in the near future and which sector is likely to lag. Then, we will select our buy and sell stock picks.

There are eleven stock market sectors: Energy, Materials, Industrials, Consumer Discretionary, Consumer Staples, Health Care, Financials, Technology, Communications Services, Utilities and Real Estate. They are further divided into industries, but we will just stick with these main sectors of the stock market.

We will analyze them and their relative performance by looking at the Select Sector SPDR ETF’s.

Let’s start with our first charts (charts courtesy of www.stockcharts.com).


There’s a S&P 500’s 30-minute chart along with market sector indicators for the past month. The S&P 500 index has gained 3.63% since December 13. The strongest sector was the Technology XLK, as it gained 7.29%. The Communication Services XLC gained 5.70%, and the Real Estate XLRE gained 4.83%.

On the other hand, the weakest sector was the Materials XLB, as it lost 0.8%. The Financials XLF gained just 0.58%, and the Consumer Staples XLP gained 1.69%.

Based on the above, we decided to choose our stock picks for the next week. We will choose our top 3 long and top 3 short candidates using a contrarian approach, and top 2 long and top 2 short candidates using the trend-following approach:

Contrarian approach (betting against the recent trend):
• buys: 1 x Materials, 1 x Financials, 1 x Consumer Staples
• sells: 1 x Technology, 1 x Communication Services, 1 x Real Estate

Trend-following approach:
• buys: 1 x Technology, 1 x Communication Services
• sells: 1 x Materials, 1 x Financials

Contrarian approach
Top 3 Buy Candidates

DD DuPont de Nemours, Inc. – Materials

The DD stock has been relatively weak in the recent weeks following breaking below the early December local low. However, its short-term trading action is quite bullish and we expect some upward correction. Potential resistance level is at $62-63.

CINF Cincinnati Financial Corp. – Financials

The Cincinnati Financial Corp. stock keeps trading sideways following breaking above two-month-long downward trend line. We could see a breakout higher at some point. The support level is at around $103, and the resistance level is at $106-107.

CHD Church & Dwight Co, Inc. – Consumer Staples

The CHD stock has been relatively strong in the recent days. We could see an attempt at breaking above the resistance level of around $70-71.

We hope you enjoyed reading the above free analysis, and we encourage you to read today’s Stock Pick Update – this analysis’ full version. There, we include the remaining long and short stock picks for the next week. There’s no risk in subscribing right away, because there’s a 30-day money back guarantee for all our products, so we encourage you to subscribe today.

Check more of our free articles on our website – just drop by and have a look. We encourage you to sign up for our daily newsletter, too – it’s free and if you don’t like it, you can unsubscribe with just 2 clicks. If you sign up today, you’ll also get 7 days of free access to our premium daily Gold & Silver Trading Alerts. Sign up for the free newsletter today!

Thank you.
Paul Rejczak
Stock Trading Strategist
Sunshine Profits – Effective Investments through Diligence and Care

* * * * *
Disclaimer

All essays, research and information found above represent analyses and opinions of Paul Rejczak and Sunshine Profits’ associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Paul Rejczak and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Rejczak is not a Registered Securities Advisor. By reading Paul Rejczak’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Paul Rejczak, Sunshine Profits’ employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.