Buy Amazon And ProShares Ultra QQQ

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The coming week is post-OPEX week in November and is also Thanksgiving week. Both have a bullish bias. In fact, holding stocks from Wednesday through Friday has been profitable 80% of the time.  

To select some stocks for short-term trades, the following strategy is employed. The best-performing stocks in the coming week with at least 20 years of price data are calculated and are presented below. The stocks are ranked by the percentage of time periods in which the stock rose. This has been a strong week for Amazon, having risen 88.50% of the time in this week. The return has been 7.24% and the expected return (the product of the first two numbers) is 6.33%. The stock has been trading for 24 years.

Best Performing S&P 500 Stocks from November 20th- to 27th

These stocks have been the best performers in the coming week.

Cycles Research Investments LLC

From this list, the stocks are screened for relative strength and by dynamic cycles. The latter term refers to the most active cycles that are generating profits now

Amazon has risen almost 88% of the time in the coming week. The 26th has been the most profitable day of the month, up 79% of the time for a 3.2% gain. In November this stock has been up 76% of the time over 24 years. The stock is likely to exceed $3750, hitting new highs. The weekly graph below shows a rectangular or triangle formation that began in September 2020. This move is likely to break price out of this formation with a 4000 target by January.

Chart 1

This weekly technical picture is constructive.

Cycles Research Investments LLC

The NASDAQ composite has risen 71.4% of the time in November for a 2.3% average gain, the strongest month of the year over 42 years. The strongest day in November has been the 24th up 78.6% of the time for an average 1.0% gain.  

The NASDAQ can be purchased by buying exchange traded funds (ETFs). The PowerShares QQQ Trust (QQQ) moves with the index. For more aggressive investors, the ProShares Ultra QQQ (QLD) is a leveraged ETF that moves twice as much as the index. I select the QLD to purchase for this week.

Chart 2

New highs are likely.

Cycles Research Investments LLC