Stocks To Trade In August

Here are the cycles-based trade recommendations for the DJIA stocks in the month of August…

For the month of August, the cycle/relative strength concept is applied. First, the Dow Jones 30 stocks are ranked from the best performer to the worst by calculating the percent of months in which the stock rose in that month. The top 10 were screened as follows. The top ten best traditional performers in August were then screened for relative strength by a unique tool that measures current relative performance by several relevant time periods. Those that pass both screens are buys for the month. The stocks that are both weak August performers and are currently weak relative performers are short sales for the month.

The seasonal screen for the month is presented below. The number of years of data is in the last column. The % Times Return column shows the percent of months in which the stock rose. The Return column shows the average percentage gain in the month. The Expected Return column is the product of columns two and three. We can see that Apple AAPL has been trading for 39 years and has risen in 61.5% of all the months of August. The average return has been 5.71% and the expected return is 3.52%.

Of the top 10, these stocks show strong August performance and relative strength are considered buys for the month:

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Apple

Microsoft MSFT

Home Depo HD t

Procter and Gamble PG

Nik NKE e

Regarding the weakest 10, these stocks show weak August performance and declining relative strength and are suitable short sales:

Exxon

IBM IBM

Boeing BA

Market cycles point higher in August, so the purchases are favored.

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