Stocks This Week: Buy Garmin And Accenture

Photographer: Michael Nagle/Bloomberg

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The S&P was largely unchanged for the week as expected. Higher prices are expected in the coming week. This will be options expiration (OPEX) week in November. This time interval has a bullish bias as we can see in the histogram below. The chart shows the expected return for each November OPEX day since 1985.

 OPEX Week Expected Return in November

The S&P daily behavior may look like this in the coming week.

Cycles Research Investments LLC

To select some stocks for short-term trades, the following strategy is employed. The best-performing stocks in the coming week with at least 10 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.

Best Performing S&P 500 Stocks in the Coming Week

These stocks have historically 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.

The selections of last week, Applied Materials and Automatic Data Processing, rose by 2.39% and 0.58% respectively. Both the S&P 500 and the NASDAQ declined slightly. Let us look to this coming week, in which the S&P has risen only 46.3% of the time.    

In the coming week, Garmin has risen 80% of the time over the last 20 years for an average gain of 3.30%. In the month of November, the stock has risen 67% of the time. The dynamic monthly and weekly cycles are both bottoming in the coming week. All buy signals have been profitable in the last year. The stock is likely to rise closer to $165.

Chart 1

Cycles point to higher prices.

Cycles Research Investments LLC

Accenture has risen almost 81% of the time in November and 68.4% of the time in the coming week. The 16th has been the strongest day in November, up over 85% of the time. The daily cycle bottoms on Tuesday. All eleven signals have led to higher prices. Relative strength is strong. The $380-$385 is a reasonable short-term target.  

Chart 2

This stock could rise by $5 to $10.

Cycles Research Investments LLC