Stocks This Week: Buy AvalonBay Communities And Sell Short PPL Corporation

The coming week is the end-of-month period of strength in November. In addition, the market is very oversold after the Friday drop. Markets are likely to rally into December 3rd, when the next correction is due to begin.

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. CME Group CME has risen 77.8% of the time in this week. The return has been 2.44% and the expected return (the product of the first two numbers) is 1.90%. The stock has been trading for 18 years.

Best Performing S&P 500 Stocks from November 28th- to December 5th

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

AvalonBay Communities AVB is an equity REIT in the business of developing, redeveloping, acquiring and managing apartment communities in leading metropolitan areas. The stock has risen in the coming week 74.1% of the time over the last 27 years. Relative strength has been superior. The share price is likely to move back toward $245.


Chart 1

Looking at the other end of the spectrum, PPL Corporation PPL has been a weak stock. PPL has declined 74% of the time in the coming week. The period from December 3 through 11 has been even more bearish, down 86%. Relative strength has lagged. The stock is a short sale candidate with a price target in the $27-$28 area.

Chart 2

The Tycoon Herald