The S&P 500 have fallen 21% YTD and one can argue that a sign of bottom is emerging. One technical indicator we track is the Coppock Curve, this indicator is showing some promising signs for long-term market participant. Below are companies this indicator flag as a ‘buy’.
The one key stats one should focus on is the success rate which we define as any positive return after one year of purchase. As an example, purchasing IBM (IBM) yielded 53% success rate and 4.5% average gain. You could risk –16.6% while gaining 4.5% is not a risk reward we are comfortable with.
Our team scanned companies within the S&P 500 and are happy to report that there will be more companies reaching a ‘buy’ level in the coming month(s). Major indexes such as Dow Jones Industrial, S&P 500, and PHX Semiconductor are in the negative territory. It’s only a matter of time when they will change direction and reach a ‘buy’ level.
Here is a preview of these indexes historical statistic. These number reflect one year holding period. Extending that holding period longer will increase the success rate.
It’s exciting to know that better buying opportunities are just around the corner.
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