Stocks To Trade In June – Forbes

This approach is a cycles-based guide to short-term trading.  

In May, the four long recommendations all moved higher and appreciated by an average of  6.0% while the six recommended short sales moved higher by an average of 3.0%. The DJIA rose by 4.3%.

For the month of June, the two-cycle concept is applied. First, the Dow Jones 30 stocks are ranked from the best performer to the worst by calculating the percent of months in which the stock rose in that month. The top 15 were screened as follows. If the monthly cycle pointed up, the stock is considered a buy. In order to qualify, the monthly cycle had to rise for at least 21 days in the month. The traditionally weakest stocks in the month were screened in order to determine if the monthly cycles fell in the month; the same 21-day rule applied.

The seasonal screen for the month is presented below. The number of years of data is in the last column. The % Times Return column shows the percent of months in which the stock rose. The Return column shows the average percentage gain in the month. The Expected Return column is the product of columns two and three. We can see that Exxon (XOM) has been trading for 40 years and has risen in 60% of all the months of June. The average return has been 0.75% and the expected return is 0.45%.

Cycles point higher in June, so the purchases are favored.

Of the top 15, these stocks show rising monthly dynamic cycles for at least 21 days in the month and are considered buys for June:

Cisco

Exxon

Merck MRK

Microsoft MSFT

Pfizer PFE

Regarding the weakest 15, these stocks show declining monthly cycles and are suitable short sales:

Goldman Sachs GSBD

Home Depot HD

Intel INTC

IB IBM M

McDonald

VISA

Disney

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