The study of an anomaly of the US stock market as the time of day effect revealed the benefits of using it for trading American stocks. Besides, the best growth results in the first 45 minutes of Monday were shown by Apple, Intel and Home Depot, Tuesday – Visa, Travelers and Apple, Wednesday – Travelers, IBM and Procter & Gamble, Thursday – American Express, Travelers and Home Depot, and the growth leaders in the last 2 hours of trading were UnitedHealth on Mondays and American Express on Fridays.
It is a good opportunity for daily short-term market entries!
We use the very best as trading instruments: Apple, Visa, Travelers, American Express and UnitedHealth.
The latest quarterly reports from all of the listed above companies were better than expected and predicted. Apple's revenue was $97.28 billion versus the predicted $94.03 billion, and earnings per share (EPS) was $1.52 versus the predicted $1.42. Visa indicators in the current/predicted format are as follows: revenue $7.19 billion / $6.83 billion, EPS of $1.79 / $1.65; Travelers indicators: revenue $8.37 billion / $8.03 billion, EPS $4.22 / $3.61; American Express indicators: revenue $11.74 billion / $11.62 billion, EPS $2.73 / $2.44; and UnitedHealth indicators: revenue $80.15 billion / $78.73 billion, EPS $5.49 / $5.36.
This means that the upside potential for their stock remains at least until mid-July/early August, when the companies will have to report again.
Approximate weekly trading plan:
1. Monday. Buy Apple at the start of the trading, close in 45 minutes. Buy UnitedHealth 2 hours before the end of trading, close at the end of trading on Monday.
2. Tuesday. Buy Visa at the start of the trading, close in 45 minutes.
3. Wednesday. Buy Travelers at the start of the trading, close in 45 minutes.
4. Thursday. Buy American Express at the start of the trading, close in 45 minutes.
5. Friday. Buy American Express 2 hours before the end of the trading, close at the end of the trading.
Protect funds by Stop Loss order, which should be placed below the minimum level of the previous trading day.
This trading plan showed an average return of 0,22% with a drawdown of 1,5% on the week of 23-27th of May this year.
Trading on financial markets involves a high level of risk and may lead to the loss of investment capital. The MarketCheese team is not responsible for the possible loss of your investment funds.