MARKET OUTLOOK, 15 JUNE 2020

Market headline: Stock indexes declines in the worst week since March

The S&P500 started the week meeting a significant milestone: it was positive for the year! plus the Nasdaq Composite finally rose above 10,000 – but went downhill from there as it surrendered to profit-taking that turned to be the worst week since March.

The S&P 500 fell 4.8%, the Nasdaq fell 2.3%, and the Dow Jones Industrial Average fell 5.6%.

Most of the week’s losses came on Thursday with the S&P 500 declining 5.9% and rebounded on Friday. as there was no specific news that contributed to the decline, some blamed the Fed while others pointed to data showing increasing rates of Coronavirus in many U.S. states reopening the economy in any case non of was really new news.

All S&P 500 sectors finished the week down, ranging from information technology down 2.0% to energy down 11.1%.

AlphaOverBeta Next Week Forecast

We predict the market is going to continue to be high volatility range trading in the coming days and weeks, the economy is not going well enough to sustain a major rally, BUT the fed and government is going to continue to pump liquidity into the markets and that alone that should support the current price levels. The market traders are not clear on the next market move as they were in previous weeks and this creates elevated levels of volatility.

We see the next key level as 2950 , and then 2800.

AlphaOverBeta uptrending watchlist

Using AOB Dashboard to spot trending opportunities in the market.

Investment Hidden Gem

Out top-ranking stock for the week is Sirius XM Holdings Inc (SIRI)

Sirius XM Holdings Inc. provides satellite radio services on a subscription fee basis in the United States. It broadcasts music, sports, entertainment, comedy, talk, news, traffic, and weather channels, including various music genres, such as rock, pop and hip-hop, country, dance, jazz, Latin, and classical; live play-by-play sports from various leagues and colleges; various talk and entertainment channels for a range of audiences; national, international, and financial news; and limited-run channels. The company also provides streaming service that includes a range of music and non-music channels, and podcasts, as well as channels that are not available on its satellite radio service; and offers applications to allow consumers to access its streaming service on smartphones, tablets, computers, home devices, and other consumer electronic equipment. In addition, it distributes satellite radios through automakers and retailers, as well as its Website. Further, the company provides location-based services through two-way wireless connectivity, including safety, security, convenience, maintenance and data services, remote vehicle diagnostics, and stolen or parked vehicle locator services. Additionally, it offers satellite television services, which offer music channels on the DISH Network satellite television service as a programming package; Travel Link, a suite of data services that include graphical weather, fuel prices, sports schedule, and scores, and movie listings; and real-time traffic and weather services. The company is headquartered in New York, New York. Sirius XM Holdings Inc. operates as a subsidiary of Liberty Media Corporation.

Sector: Communication Services
Industry: Broadcasting
Market Cap(M$): 25,990
52 Week High: 7.4$
52 Week Low: 4.11$
Forward PE: 24.73
Trailing PE: 25.80
Q Earning Growth: 0.81%
pegRatio: 2.02

Analysts Recommendations

DateFirmTo GradeFrom GradeAction
28/01/2019BuckinghamBuyNeutralup
25/04/2019Pivotal ResearchBuyHoldup
10/06/2019Credit SuisseOutperformNeutralup
07/02/2020Credit SuisseNeutralOutperformdown
18/03/2020B. Riley FBRBuymain
31/03/2020CitigroupBuyNeutralup
09/04/2020BarclaysUnderweightmain
17/04/2020Wells FargoOverweightmain
29/04/2020Morgan StanleyEqual-Weightmain
30/04/2020B. Riley FBRBuymain

Specific stocks in these sectors may be found on our Dashboard

Technical Analysis

Analyzing the stock from a technical perspective, we have these conclusions:

The stock is in an uptrend in the short-term and is expected to continue this trend for the next few days.
S
hort-term momentum is positive and medium-term momentum looks positive based on technical momentum indicators for the perspective time periods.
Oversold/Overbought: the stock is Oversold in the short term and is Oversold in the medium term.
The recent trigger to buy/sell based on technical triggers is to buy.

Analysts Recommendations

DateFirmTo GradeFrom GradeAction
16/03/2020Morgan StanleyEqual-Weightmain
30/03/2020Morgan StanleyEqual-Weightmain
24/04/2020BairdNeutralOutperformdown
07/05/2020BarclaysEqual-Weightmain

Specific stocks in these sectors may be found on our Dashboard

AlphaOverBeta sectors ranking

Below you may find our leading and lagging sectors.

As stated above, the bullish market lead by the home builders and oil, gas sectors.

Recommended Trading Strategy – “Intelligent Pairs Trading”

Performance Trading Strategy Report:

Intelligent Pairs Trading began trading on 2015-05-11 and is trading US equities and ETFs in the New York stock exchange.

Traders who understand ETFs trading benefit trading this strategy.

Here is a summary of Intelligent Pairs Trading performance:

+ 98% of trades in any 12-month window, were profitable.

+ 80% of trades in any year, were profitable.

+ The maximum drawdown since inception is -14.85%.

+ The largest profit was while trading IVV, Intelligent Pairs Trading gained 3,665$

+ The largest loss was while trading IVV, Intelligent Pairs Trading returned -1,681$

+ The gain in the last 3 months: 3.5%, which are 4,636$.

+ The gain in the last 6 months: 13.3%, which are 16,216$.

AlphaOverBeta Trades

We have a number of specific stock picks from the above sectors in our website,
You may find all of AlphaOverBeta trades in the Real Time Trading Updates of our website

Trade Safely,
Alon

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