EarningsBeats.com Digest for October 25, 2021
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Looking Ahead To An Incredible November Performer
While I never use seasonal tendencies as a primary reason to buy a stock, I do use it as a secondary indicator to confirm what I'm seeing technically on a chart. Well, there's one delivery services ($DJUSAF) stock that has gained ground in November 19 of the last 20 years. While that's not a perfect track record, it's pretty darn close.
The stock has just exploded higher recently and is crushing its peers. Check out the current chart of United Parcel Service (UPS), which also happens to be one of our Income Portfolio component stocks at EarningsBeats.com:
Check out that AD line setting a new high and also the relative strength line vs. its deliver services peers, which is soaring. History is telling me that this strength is very likely to continue during the month of November. If you haven't seen the UPS seasonality chart, then check it out:
November certainly stands out to me. The combination of bullish technicals and very favorable seasonal tailwinds makes UPS quite a compelling long candidate. For those looking for entry, however, you might get a better price this week. UPS is currently printing a negative divergence on its 60-minute chart - like so many other stocks right now. If selling kicks in this week, UPS could be a much more solid reward-to-risk trade.
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Tom Bowley
Chief Market Strategist
EarningsBeats.com
Better Timing. Better Trades.
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