Our Top 3 Trade Ideas for This Week!
November 30, 2015"Well, you’re better than any player I ever had. And you’re the best damn hitter I ever saw. Suit up."
-Pop Fisher, The Natural
By popular demand, for this week’s market call, we decided to look across all U.S. Equities to find the best long ideas.
We compared the current trading patterns for each stock to its peer group historically to gain information about the markets response to similar environments, as well as statistics on the probable outcomes for the next 5 days. We used the following criteria in our predictive analytics engine:
· Minimum market cap of $300 million
· Minimum hit rate for the stock’s current pattern historically of 65%
· Minimum number of historical matches of 30 for statistical significance
· Minimum average return of the pattern of 2% in the next 5 days
· Minimum upside to downside ratio of 3:1 (our research shows 70% probability you will fall within this range)
The three stocks with the best probabilities are Costamare (CMRE) an Industrials company, CIBC (CM) a large Canadian Bank and Cabot Oil & Gas (COG). Here are the probabilities:
Highlights for Costamare (CMRE)
· Avg. 1 week return of 3.3%
· Upside to downside ratio of 7.9x
· Historical hit rate for pattern of 70.7% on 100 matches
· Avg. 1 week return of 3.1%
· Upside to downside ratio of 5x
· Historical hit rate for pattern of 67.7% on 96 matches
Highlights for Cabot Oil & Gas (COG)
· Avg. 1 week return of 3.0%
· Upside to downside ratio of 3.1x
· Historical hit rate for pattern of 69.5% on 95 matches
Have a great week!