EarningsBeats.com Digest for November 4, 2020
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Join Tom Bowley for a briefing on market activity on Mondays and Wednesdays from 9-9:30 am EST before the opening bell. Click here to listen live or visit our YouTube page later today to view the recorded session.
New EarningsBeats.com Feature:
"Strong Seasonal Stocks"
Chief Market Strategist Tom Bowley has identified 20 specific stocks that he believes will be strong performers during the month of November. These stocks will be provided to all subscribing members, including those on trial, in the form of a ChartList later today. If you are NOT currently a subscribing member and want to access the list, just click HERE to sign
up for your NO COST 30-day trial.
Also, mark your calendars for next Monday, November 9 when we will have our "Sneak Preview: Top 10 Stock Picks" webinar that you are invited to attend. We will make sure everyone gets room instructions prior to the start of the event.
Could An Aerospace Stock Be Ready To Fly?
Aerospace ($DJUSAS) has been one of the worst industry groups of 2020. It's been a group that I've often said to AVOID. While that still remains true, I think there could be opportunities within the space, especially if breakouts begin to occur among leading aerospace stocks. That brings me to TransDigm Group (TDG). It just broke out to another 52 week relative high vs. its DJUSAS peers and is rapidly approaching key overhead price
resistance:
In addition to a potential breakout, we should also be aware of the fact that TDG loves the month of November as its share price has risen 93% of Novembers over the past 15 years. That's 14 out of 15 years. Take a look at TDG's historical performance by calendar month over this period:
Seasonality is lining up and we're beginning to see strength in industrials. A price breakout in TDG shares, together with tremendous seasonal strength could open the door to a substantial rally in TDG shares to close out the year. There's still plenty to be worried about on this chart, however, as the very weak relative performance of aerospace and the declining AD Line of TDG suggest the bears aren't quite ready to give up their stranglehold on
TDG. Still, knowing the seasonal history could be very worthwhile if the technical conditions continue to improve.
Happy trading!
Tom Bowley
Chief Market Strategist
EarningsBeats.com
Better Timing. Better Trades.
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