Alert! Double Dose of Industrial Stocks at Key Buy Points

RoboStreet – December 5, 2019

Markets in Lockstep with China Trade News 

There is no argument among traders and investors that trade-related news has the market gripped to short-term directional moves. While the majority of sectors have broken out to support the new highs for the stock indexes in November, the broad market is consolidating the gains and investors are waiting on trade deal headlines, wrapping up tax-loss selling and repositioning capital into technically strong stocks and ETFs. It’s business as usual, but currently, there is a lot of market churn. 

Economic data has been supportive of the bullish tone and next week’s FOMC meeting will likely bring with it more confident commentary from Fed Chairman Jerome Powell, accompanied by a no move on interest rates and a reiteration of a neutral stance on fiscal policy. Bond yields have backed up this week in light of these assumptions. 

 “I’m investing my own money in each and every stock as my AI platform identifies.”

And remember we’re not talking about day-trading here.  I’m looking for 50-100% gains inside of the next 3 months, so my weekly updates are timely enough for you to act.

Click Here – To See Where I Put My RoboInvestor Money

Whether a trade deal can be reached by the December 15 deadline when further tariffs are applied to an additional $160 billion of Chinese imports. And while the market may pull back further to rising support, the rally will likely remain intact. Key technical levels for SPY are 302 (50-day m.a.) and then 292 (200-day m.a.). So, we’re talking about a 3%-6% near-term downside move if negative trade headlines cross the tape. 

Sector rotation during the month of November was highly notable in that economically cyclical sectors played a key role in the major averages establishing new highs. There were upside breakouts in industrials, semiconductors, financials and metals and mining stocks that are indicating the current quarter is a turning point for economic growth. 

According to FactSet – For Q3 2019, the blended earnings decline for the S&P 500 is -2.2%. If -2.2% is the actual decline for the quarter, it will mark the first time the index has reported three straight quarters of year-over-year earnings declines since Q4 2015 through Q2 2016.

For the third quarter, S&P 500 companies are reporting a decline in earnings of -2.2% and growth in revenues of 3.1%. Analysts see a decline in earnings in the fourth quarter followed by earnings growth of 5% to 7% in Q1 2020 and Q2 2020. For Q4 2019, analysts are projecting a decline in earnings of -1.4% and revenue growth of 2.5%.

For CY 2019, analysts are projecting earnings growth of 0.1% and revenue growth of 3.8%. For Q1 2020, analysts are projecting earnings growth of 5.3% and revenue growth of 4.4%. For Q2 2020, analysts are projecting earnings growth of 6.7% and revenue growth of 4.9%. For CY 2020, analysts are projecting earnings growth of 9.9% and revenue growth of 5.5%. So, clearly investors are pushing the market higher on strong 2020 expectations. 

Of the several sector breakouts, industrial stocks are notably impressive because of the upside potential for capital gains is so powerful when those cyclical stocks start to outperform. The chart of the S&P 500 industrial Sector SPDR ETF (XLI) shows a clean high-volume breakout at the $80 level. 

During the course of the current market consolidation, two stocks we’ve bought for our RoboInvestor Portfolio are Honeywell International (HON) and Union Pacific (UNP), both industrial stalwarts and leading components within the XLI sector ETF. The AI-driven Tradespoon Stock Forecast Toolbox that gives an “A” rating to HON with a price target of $196 from where the stock currently trades at $174. 

Looking at Union Pacific (UNP) with the same tools, the stock currently carries a “B” rating with a price target of $187 which is also well above its current price of $170. 

I expect both HON and UNP to produce excellent profits for our RoboInvestor subscribers, and I say that with a high degree of confidence. Our Winning Trades Percentage of 88.46% means we’re making money on roughly 9 out of every 10 trades we put to work. This is the power of having cutting edge AI platform at your fingertips, which is always learning and improving its ability to select the highest quality stocks and ETFs with tremendous timing accuracy on both the buy and sell signals. 

During the month of November, we closed out eight trades for an average gain of +7.90%. Imagine averaging these kinds of returns month after month. Do the math and it gets pretty exciting over the course of a year. The secret is consistency and having a proven system in place that delivers winners and doesn’t venture from high-quality stocks and ETFs that are liquid and well represented by Wall Street institutions. 

I couldn’t think of a better way to kick off the holiday season than to become a new member of RoboInvestor today. With my always-thinking machines, I do all the heavy lifting and provide you with all the parameters for each and every trade. For the RoboInvestor Portfolio, we are looking to profit from directional trades that extend out beyond a couple of weeks. However, if my AI indicators signal to take profits and sell, we sell, no questions asked. 

Take me up on my offer to guide your portfolio to real wealth creation on an every-day basis and not because one or two stocks in your portfolio had a great year. The most advanced and highest performing hedge funds in the world use AI almost exclusively to model their portfolios. I offer an even better AI algorithm to retail investors that don’t have to pony up $1 million to gain access to powerful investing technology and the heady results that are produced. 

Join RoboInvestor today and make a lifetime decision to enhance your wealth and nest egg for 2020 and for many years to come. 

 “I’m investing my own money in each and every stock as my AI platform identifies.”

And remember we’re not talking about day-trading here.  I’m looking for 50-100% gains inside of the next 3 months, so my weekly updates are timely enough for you to act.

Click Here – To See Where I Put My RoboInvestor Money

*Please note: RoboStreet is part of your free subscription service. It is not included in any paid Tradespoon subscription service. Vlad Karpel only trades his own personal money in paid subscription services.  If you are a paid subscriber, please review your Premium Member Picks, ActiveTrader, MonthlyTrader, or RoboInvestor recommendations. If you are interested in receiving Vlad’s personal picks, please click here.