Short-term stock purchases: plan by the end of the week

10 August 2022 146
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Testing of such an anomaly of the U.S. stock market as the time-of-day effect has shown the tendency for American shares to rise:

 

* during the first 45 minutes of trading from Monday to Thursday

* 1.5 - 2 hours before trading closes on Mondays and Fridays


 

Shares of IBM and Procter & Gamble on Wednesdays, shares of American ExpressHome Depot on Thursdays, shares of Visa and Procter & Gamble on Fridays showed the best growth results in the first 45 minutes of trading.

 

The leaders in growth at the end of Monday's trading session were UnitedHealth shares, and Friday's - American Express shares.

 

All of the companies listed above, except Home Depot have already reported results for the third quarter of fiscal 2022, and successfully. All companies exceeded expectations on income, and earnings per share were also higher than expected, except for EPS of Procter & Gamble.

 

Home Depot will be reporting next Tuesday, August 16.

 

Good quarterly reports of the companies usually inspire investors, so the potential for their growth is still strong.


 

On this basis, it is possible to plan short-term purchases during the current week.


 

Trading plan:

 

1. To buy shares of one or two companies IBM and Procter & Gamble on Wednesday's open.

 

2. Same as the first item, to buy shares of American Express and/or Home Depot, but on Thursday's open.

 

3. To buy shares of one or two companies Visa and Procter & Gamble on Friday's open.

 

According to this plan, positions should be closed after 45 minutes after the opening of the trading session.

 

Funds can be protected by Stop Loss order, set below the minimum of the previous trading day.

If the session opens with a gap and the Open of the day is below the previous day's minimum, it is better to refrain from entering the market.


 

4. To buy shares of American Express 1.5 - 2 hours before the close of trading on Friday.

 

Closing of a position at the end of trades.

 

Protective order Stop Loss is below the minimum of the previous day.

 

And if the session opens with a gap, and the Open of the day is below the minimum of the previous day, it is better to refrain from entering the market.



 

While trading, keep in mind the spread and money management rules!

 



Warning!

 

Financial market trading is inherent in high level of risk and can cause loss of investment capital. MarketCheese team is not responsible for the possible loss of your investment funds.

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