Stocks This Week: Buy American Airlines And Apple

The cycle support from last week has dissipated. However, the longer-term uptrend remains intact. On Wednesday, the S&P 500 broke out to the upside from short-term formations that project a price that exceeds the prior high. The next stop appears to be in the 3500 area. Seasonality is no longer as favorable and sentiment is less supportive but the trend remains bullish. The net result is likely to be a more gradual rise led by fewer stocks. 

Here are stock recommendations for the short term.

American Air Line’s weekly cycle has hit a low. The cycle tops on September 12th. All five buy (and sell) signals in the last year have been successful. The $13.5-$15.0 area is a likely target.

Chart 1

Chart 2

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Chart 3 shows that the daily Apple cycle topped last week but bottoms on 13th. All twelve buy signals have been profitable in the last year. The 13th also happens to be the most bullish day of the month for this stock, having been up 77% of the time since 1980. The stock is likely to rally from midweek to the $475 area or higher. Relative strength has been hitting a new high.  

Chart 3

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