🚀 Today's Big Ideas: Caterpillar (+12%), TSMC (+28%), JP Morgan (+13%)
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TODAY’s Big Ideas
CATERPILLAR could set up for a +12% rally over next 6 months
TAIWAN SEMICONDUCTOR could set up for a +28% rally over next 6 months
JPMORGAN could set up for a +13% rally over next 3 months
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(1) Score 9.9 (out of 10): CATERPILLAR could be impacted by macro data and rally +12% over next 6 months
What’s Going On Here?
Caterpillar Inc. announced second-quarter 2022 numbers which beat Wall Street expectations. Sales and revenues came to $14.2 billion, an 11% increase compared with $12.9 billion in the second quarter of 2021.
Why Now?
CATERPILLAR INC indicates an interesting buy set up for the next 6 months. During the previous 4 instances when the ISM Manufacturing New Orders fell below 50 for the 2nd consecutive month, after being >50 for at least 9 months (as has just happened), CATERPILLAR INC rallied by +12.2% during the following 6 months, with a hit ratio of 100%. This buy signal received a high score of 9.9 (out of 10). This insight was generated with a closing price of 185.69.
What’s This Company About?
CATERPILLAR INC is in the Machinery-Constr&Mining business. Based on the last 2 years' risk/return profile, this asset is seen as Very Risky. Ticker symbol: CAT US.
What’s My Risk / Reward and Time Horizon?
We found 6 months to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 208.38 (+12.2%) has been reached.
Returns during similar periods:
You might also like: Score 9.4 (out of 10): SYNOPSYS poised to seasonally rally by +7.7% during the next 90 days.
(2) Score 9.9 (out of 10): TAIWAN SEMICONDUCTOR could be impacted by macro data and rally +28% over next 6 months
What’s Going On Here?
TSMC could face repercussions following Nancy Polesi’s visit to Taiwan, however, the recent price decline could offer trader attractive entry opportunities.
Why Now?
TAIWAN SEMICONDUCTOR indicates an interesting buy set up for the next 6 months. During the previous 4 instances when the ISM Manufacturing New Orders fell below 50 for the 2nd consecutive month, after being >50 for at least 9 months (as has just happened), TAIWAN SEMICONDUCTOR-SP ADR rallied by +28% during the following 6 months, with a hit ratio of 100%. This buy signal received a high score of 9.9 (out of 10). This insight was generated with a closing price of 84.96.
What’s This Company About?
TAIWAN SEMICONDUCTOR-SP ADR is in the Semicon Compo-Intg Circu business. Based on the last 2 years’ risk/return profile, this asset is seen as Very Risky. Ticker symbol: 2330 TT.
What’s My Risk / Reward and Time Horizon?
We found 6 months to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 108.73 (+28%) has been reached.
Returns during similar periods:
You might also like: Score 9.8 (out of 10): WALMART could be impacted by macro data and rally +6% over next 2 months
(3) Score 8 (out of 10): JPMORGAN could be impacted by macro data and rally +13% over next 3 months
What’s Going On Here?
For the past 18 months, JP Morgan has been preparing to launch a full-service travel business where customers can plan and book trips ranging from a simple domestic flight to an extravagant safari.
Why Now?
JPMORGAN CHASE & CO indicates an interesting buy set up for the next 3 months. During the previous 4 instances when the ISM Manufacturing New Orders fell below 50 for the 2nd consecutive month, after being >50 for at least 9 months (as has just happened), JPMORGAN CHASE & CO rallied by +12.7% during the following 3 months, with a hit ratio of 75%. This buy signal received a high score of 8 (out of 10). This insight was generated with a closing price of 112.82.
What’s This Company About?
JPMORGAN CHASE & CO is in the Diversified Banking Inst business. Based on the last 2 years' risk/return profile, this asset is seen as Very Risky. Ticker symbol: JPM US.
What’s My Risk / Reward and Time Horizon?
We found 3 months to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 127.11 (+12.7%) has been reached.
Returns during similar periods:
For more investment insights, please visit us at www.LongShortBets.com