The Weekly Selection: 12/18/2022
Volume 018
Hey Everyone!
Happy Holidays. Given the current market conditions, including all major economic events for the month out of the way and frankly things looking pretty terrible, this issue of The Weekly Selection will be a bit shorter.
Lets start with the Broad market:
As we can see, things are looking grim. We retested and full rejected a long standing downtrend the market has been experiencing for over a year. This is likely due to the fact that people are now beginning to realize that even though inflation is tapering off, the acceleration in rate hikes has nullified the possibility of a ‘soft landing’. In laymans terms, a soft landing would have been a smooth transition from high inflation to low without crippling the market. I am not a fortune teller, but this no longer seems possible.
Quote of the week:
“Investing should be like watching paint dry or grass grow. If you want excitement, take $800 and go to Las Vegas”
- Paul Samuelson, Economist
Week to week we come together for this newsletter to look at stocks for the upcoming week. Short timeframe, quickly actionable trade ideas. In truth, the ultimate power in financial markets comes from the long game, and more specifically the boredom of buy and hold investing. Don’t lose sight of the goal!
Past Performance:
Individual stocks, while generally performing poorly for the entirety of the week, all had noticeable runs. I captured almost all of these on my twitter, which can be found HERE. MRNA 0.00%↑ was a big winner, boasting a 10.12% gain on the week, with a high of 23.77% run. Between all of last weeks selection stocks, we still outperformed the broad market which more than doubled the loss of the selection picks.
Important note:
Last week the IRA writeup was supposed to release. School finals kept me busier than anticipated, and that will instead release on Tuesday of this week.
Charts:
Looking forward, I’m not seeing much. I will most likely be taking this week to spend time with family as the holidays are upon us. Sometimes its easy to forget why we do this in the first place.
CAT 0.00%↑ up first. Managing to hold up in these tough conditions which is hard to find these days.
MRNA 0.00%↑ is out of its long term base, and I think it may have more in the tank.
META 0.00%↑ is not only displaying relative strength, but is now trading at a fundamentally sound level. 2x sales at a company this size is quite extraordinary. I will likely enter this into my long term portfolio soon.
VZ 0.00%↑ despite a considerable debt issue, VZ 0.00%↑ dividend growth and current P/E are exceptional. I entered this position in my IRA recently.
ADBE 0.00%↑ is an old friend of this newsletter. I still have my core position here, and I will look to trade this upward as its showing decent strength vs the market.
Thats all for this week everyone.
Thank you for reading and continuing to support this newsletter.
Tanner