🚀 Today's Big Ideas: Nikkei (+8.0%), Microsoft (+8.3%), SP500 (+4.1%)
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TODAY’s Big Ideas:
Nikkei could be impacted by macro data and rally +8% over next 1 month
MICROSOFT poised to seasonally rally by +8.3% during the next 90 days
SPDR S&P 500 poised to seasonally rally by +4.1% during the next 90 days
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(1) Score 8.1 (out of 10): Nikkei (Japan) could be impacted by macro data and rally +8% over next 1 month
What’s Going On Here?
The ISM New Orders index tends to be a leading indicator for future economic growth. After a long period of expansion, it has just dropped below 50.0 – which indicates the start of a contraction. But is this always seen as negative for assets?
Why Now?
Nikkei (Japan) indicates an interesting buy set up for the next 1 month. During the previous 5 instances when the ISM Manufacturing New Orders fell below 50 for the first time in a year (as has just happened), Nikkei (Japan) rallied by +7.9% during the following 1 month, with a hit ratio of 80%. This buy signal received a high score of 8.1 (out of 10). This insight was generated with a closing price of 26,643.
What’s This ETF About?
Nikkei (Japan) is in the Equity market index business. Based on the last 2 years’ risk/return profile, this asset is seen as Very Risky. Ticker symbol: N225.
What’s My Risk / Reward and Time Horizon?
We found 1 month 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 28,749. (+7.9%) has been reached. Based on Nikkei (Japan)’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 25,958. (last price at 26,643), which is equivalent to a -2.6% decline.
Returns during similar periods:
(2) Score 8.9 (out of 10): MICROSOFT CORP poised to seasonally rally by +8.3% during the next 90 days.
What’s Going On Here?
Microsoft has cut a small percentage of employees as the new fiscal year begins. This cost saving exercise should mildly improve the bottom line.
Why Now?
MICROSOFT CORP indicates an interesting 90 days seasonal set up. During similar occasions, MICROSOFT CORP shares had a median return of +8.3% – based on 9 historical occasions with 9 of those showing positive returns (100%). This buy signal for MICROSOFT CORP received a high score of 8.9 (out of 10). This insight was generated with last price of 253.67.
What’s This Company About?
MICROSOFT CORP is in the Applications Software business. Based on the last 2 years’ risk/return profile, this asset is seen as Moderate Risk. Ticker symbol: MSFT US.
What’s My Risk / Reward and Time Horizon?
We found 90 days 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 274.77 (+8.3%) has been reached. Based on MICROSOFT CORP’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 241.87 (last price at 253.67), which is equivalent to a -4.7% decline.
Returns during similar periods:
You might also like: Score 7.4 (out of 10): TOLL BROTHERS INC sets up for +6.4% rally in 1 month
(3) Score 9.4 (out of 10): SPDR S&P 500 ETF TRUST poised to seasonally rally by +4.1% during the next 90 days
What’s Going On Here?
The fear of inflation is having less of an impact on stock prices. Inflation proxies, such as oil, copper and agriculture commodities have corrected -20% from their highs. This could result in lower rate hike expectations.
Why Now?
SPDR S&P 500 ETF TRUST indicates an interesting 90 days seasonal set up. During similar occasions, SPDR S&P 500 ETF TRUST shares had a median return of +4.1% – based on 9 historical occasions with 9 of those showing positive returns (100%). This buy signal for SPDR S&P 500 ETF TRUST received a high score of 9.4 (out of 10). This insight was generated with last price of 388.67.
What’s This Company About?
SPDR S&P 500 ETF TRUST is in the Growth&Income-Large Cap business. Based on the last 2 years’ risk/return profile, this asset is seen as Moderate Risk. Ticker symbol: SPY US.
What’s My Risk / Reward and Time Horizon?
We found 90 days 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 404.56 (+4.1%) has been reached. Based on SPDR S&P 500 ETF TRUST’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 376.37 (last price at 388.67), which is equivalent to a -3.2% decline.
Returns during similar periods:
You might also like: Score 7.4 (out of 10): FEDEX CORP sets up for -6.1 drop in 3 months
For more investment insights, please visit us at www.LongShortBets.com