The Trade Ideas November 2020 report below comprises:
- Trade Ideas Trade of the Week for each week in November.
- A summary showing the number of times that HOLLY traded in the industry and what was the profit or loss associated with those trades.
- About Trade Ideas.
Trade of the Week for November
Week 1
Cash is the Trade of the Week | The expected volatility of Tuesday’s elections. There simply is NO reason to force a trade this week. Let’s sit back, keep our powder dry and observe what happens going into next week for a better opportunity.
Week 2
Harley-Davidson, INC. (HOG) | A long candidate has been identified by the scan we call “Above all Averages.” The daily chart of Harley-Davidson, Inc. looks too good to ignore here. The chart shows us a nice gap breakout from recent earnings while not giving back much in price to consolidate sideways. This is a very bullish pattern that we discuss in the swing trading e-book seen here. Note the 10-day simple moving average supporting price in the last few days. This HOG looks ready to take flight!
Week 3
Cleveland-Cliffs, Inc. (CLF) | A short float of 16% in CLF will surely help push any continued strength above the recent highs. The Trade of the Week in CLF will not be live until it trades back above Friday’s high of 8.52. The suggested stop will be to NOT let the price close below the rising 20-day moving average in red, which is close, so you can be more aggressive on share size with a tight stop such as this one.
Week 4
Lordstown Motors Corp. (RIDE) | This week, we are going to turn up the volatility a bit more than usual. By this, we mean a relatively new issue stock will be our focus. There is not much data on the daily chart so we have to rely on a few other variables. Right now, we are in the ‘silly season’ of trading where small-cap names are popping up left and right. Last week demonstrated amazing strength in the Electric Vehicle and Alt Energy names. One of the newer names that perhaps may still be flying under the radar is Lordstown Motors.
Trade Ideas’ Machine Learning AI:
HOLLY, November 2020 Overall Performance
Over the course of November 2020, HOLLY strategized a total of 219 trades up from 213 in October. Overall performance was an increase of 8.8%, exactly matching the SPY. Overall, HOLLY’s performance in a high volatility and event driven environment continues to fall within acceptable trading scenarios as described below.
The table below details the Top 5 and Bottom 5 Sectors and the performance in each. The full risk profit is the profit per share of the trade using no stops and holding until just before the market close. Enterprise licensees and subscribers recognize that their hold times vary beyond end of day according to their risk management preferences. The total performance of HOLLY AI for November was -2%.
HOLLY Performance by Sector for November 2020
Conclusion
Portfolio Managers and Traders who avail themselves of HOLLY gain the ability to increase performance and mitigate risk. HOLLY has no emotional response to market conditions. As has been true since HOLLY’s inception, October 2020 proved out this principle of HOLLY’s effectiveness.
About Trade Ideas
Trade Ideas is an artificial intelligence decision tool that enables portfolio managers and traders to make better decisions in the stock market.
Trade Ideas identifies opportunities to capture alpha before others and in sectors and places within the market where no one else is looking.
Overnight, Trade Ideas artificial intelligence capability, HOLLY, runs massive structured and unstructured data (market activity, news, social media, etc.) on all US equities across some 40 different trading strategies, each of which has multiple algorithms, effectively taking into account tens of millions of simulated trades.
The result is the reporting each trading day of 5-7 trading scenarios which may outperform the market. Risk guardrails are set against each strategy, so traders are alert when up or down limits are reached intraday.
Additionally, each week Trade Ideas publishes it’s free Trade of the Week. Visit the website to sign up.
https://www.trade-ideas.com
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.