“Spring being a tough act to follow, God created June.” – Al Bernstein
Being it the start of a new month, I am deep in market scans from both a technical and seasonal perspective. The first session of the month for me is usually a research day where I spend time putting together my version of a Top 10 List. In other words, ten stocks I have on a watch list that I plan to take positions in during the month of June in attempts to outperform the benchmark. I start with a monthly screen which goes something like this:
Stocks up more than 90% of the time in the month of June with gains on average of at minimum 10%. If this particular screen doesn’t return any names I will adjust it. I also enter criterion for average daily volume in excess of 300k shares to ensure liquidity.
Names returned this month meeting those criterion: $XNCR, $HCLP, $AMBA, $PFPT, $IMPV, $MMYT, $LGIH, $TWOU, $CARB and $QTWO.
From the list I look at those setups displaying what I believe have the most potential from a technical stand point.
I took a position last week in $PFPT as it was my fave technical setup – although waiting for a pullback would be prudent as it began working almost immediately.
I will be looking to take a position in AMBA this week. You can see the consolidation range in play and I am content picking up a position near the midpoint or below for a July position.
If you are in need of some oil and gas exposure, I think HCLP is getting ready. Wait for “one more touch…”
Now, for a degenerate lotto play, give this RXII a look. Seasonal stats are stellar with the stock up 4/4 times the past four years in the month of June for an average gain of 26%. I also dig the setup as it is easy to risk manage:
Hopefully this gives you a few ideas as we kickoff a new month. I am still getting familiar with the new wordpress features so your patience is appreciated as I fumble my way through these first few blogs with the graphics, etc.
I hope you all had a great weekend and I’ll talk to you soon!
OC