Stocks This Week: Buy Applied Materials And Automatic Data Processing

It appears likely that the market will sell off early in the week and then recover later in the week. This is to be expected after such strong action in the last week and also in the last month. The will likely leave the market unchanged by the close on Friday. This makes short-term stock selection more difficult.

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.

Best Performing S&P 500 Stocks in the Coming Week

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

Applied Materials has historically risen 68% of the time over the last 41 years for an average gain of 1.58%. In the month of November, the stock has risen 63% of the time. The dynamic daily and weekly cycles are both ascending in the coming week, increasing the prospect of higher quotes. The only negative is that the shares are overbought after it recent run. The saving grace is that price is very close to support at $143 which was the point of the last breakout. And, there are higher lows in momentum.

Chart 1

Automatic Data Processing has risen almost 71% of the time in the coming week. The daily cycle bottoms on Monday. Eight of the last nine daily signals have led to higher prices. Relative strength has been rising since September. In November this stock has been up 69% of the time over 41 years.

Chart 2