Cycles are topping. Monday will be up, but Tuesday is likely to be down. Note below that May OPEX week is atypical. It is strong only early in the week and then drifts down as the week progresses. The post-OPEX week has actually been stronger. However, momentum is likely strong enough to carry the averages over the near term. This may be the last bullish week of the month. Here are pair of buy recommendations.
S&P in OPEX Week in May
Blue: Average Percentage Change
Red: Probability of a rise on that day
Green: Expected Return (Product of the first 2)
The Honeywell daily cycle hit a low on the 1st, and tops on May 28th. All eight signals have made money in the last year. The weekly cycle also flashes a buy signal, correct in all six cases in the last year. Here is a momentum signal. After the DJIA has risen more than 2% in a week as it did last week, this stock has rallied in 11 of 14 cases. May 10th has been the strongest day of the month in terms of expected return. The monthly cycle also points up through May. The objective is $235 or higher.
Chart 1: HON Daily Cycle
Chart 2: HON Daily Graph
The Flowserve daily cycle points up in this week. All ten buy signal have been profitable in the last year. The weekly and monthly cycles are also ascending. The stock may reach $45.
Chart 3: – FLS Daily Cycle
Chart 4: – FLS Daily Graph