Buy CVS Health Corporation And Lennar Corporation

Photo by: NDZ/STAR MAX/IPx 2021 12/30/21


The S&P is likely to rally somewhat in the coming week. Here are a pair of stocks that show seasonal and relative strength.

Below is a screen of stocks that have performed best in the coming period. To select some shares for short-term trades, the following strategy is employed. The best-performers in the chosen time period with at least 20 years of price data are calculated and are presented below. The issues are ranked by the percentage of time periods in which the stock rose.

Best Performing Stocks from January 9th to January 16th  

These S&P 500 stocks have been the top performers in the coming week.

Cycles Research Investments LLC

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

CVS is ranked second. January is the start of a three-month period of outperformance. From January 9th through the 16th, price has risen more about 72% of the time for an average gain of about 1.02%. The only day in the coming week that has had a negative expected return has been Wednesday. The stock has been outperforming the S&P 500 since August. The stock may reach $110 per share.

Chart 1

CVS relative strength has been strong.

Cycles Research Investments LLC

Lennar Corporation comes up on the screens as an exceptional performer for the week. All of the days have had a positive expected return. The share price has risen 68.3% of the time for an average 1.7% gain.  

This has been a strong month, up 67% of the time for an average 5.1% gain over the last 41 years. Relative strength has been strong. The share price is likely to challenge the prior $117 high.

Chart 2

Lennar is likely to test its prior high.

Cycles Research Investments LLC