It’s time to trade!
Your seven-day cycle is up. And the verdict is in …
While the market has been relatively flat over the past week — down and then back up — you are able to take a couple of good gains today.
We’ll get into the details in a moment.
First, our modeling and AI are pointing to four fresh “Buys” and two “Holds.”
Get these orders in right away …
Buy:
- CNA Financial (CNA)
- Arthur J. Gallagher (AJG)
- Rush Enterprises (RUSHA)
- Marsh & McLennan (MMC)
Hold:
- Adtalem Global Education (ATGE)
- Copart (CPRT)
Sell:
- Walmart (WMT)
- CNO Financial Group (CNO)
- Aflac (AFL)
- O’Reilly Automotive (ORLY)
- SAP SE (SAP)
As you can see, six stocks are showing all the right signs of outperformance over the upcoming seven-trading-day period.
Adtalem and Copart are sticking around. They are both just slightly down as of this morning but should rebound.
A Calm Cycle After Solid Gains
Since we’re in the thick of earnings season, we made sure to check for any surprises on the horizon for these six companies.
- MMC reported last week and beat earnings estimates.
- RUSHA reports after the market closes on your next trading day — July 30.
- AJG reports the day after that.
- And the rest won’t have their earnings released until August or September.
So, we won’t have any earnings surprises during this cycle. That also means we won’t have any earnings scares.
It should be a fairly calm seven days.
The model is clearly favoring financial and professional planning companies. They should be steady climbers for us.
One final note for your new trades:
Be sure to double-check the tickers as you sell CNO Financial Group and buy CNA Financial.
As for the positions you’ll close today:
ORLY and SAP were the top performers, with 6.8% and 3.4% open gains as I write.
The only losing position comes from AFL, which was downgraded shortly after we entered it.
That’s why we’re not going to hold it for another week.
The rest of the positions you’re selling should result in flat or slightly positive performance.
One final note for your outgoing trades:
SAP kicks off software earnings season tonight after the closing bell.
You can exit the position now or wait until after earnings. Earnings — especially for a tech company like this — can be volatile events.
If you want to hold for the potential upside, you can do so.
In Martin's portfolio, however, we'll close the position within an hour after you receive this alert.
Get all those orders in.
As noted, your next round of trades will be on July 30.
Until then …
Take care,
AL Qureiyeh
