Dow Stocks To Trade In July

Here are the cycles-based trade recommendations for the DJIA stocks in this month. In June, the long trades returned an average of -4.25% versus a change of -6.71% in the DJIA in comparison to a return of -11.09% for the short sales. Over the last 30 months, the long stocks have risen by an amount about 50% greater than that of the short sales and 30% over the DJIA.

For the month of July, 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 expected return in that month. The top stocks were screened as follows. The top best traditional performers in the month were then screened for relative strength by a unique measure that sorts by several relevant time periods. Those that pass both screens are buys for the month. The stocks that are both weak monthly performers and weak relative performers are short sales for the month.

The seasonal screen for the month is presented below showing the top-ranked stocks. This new screen combines the seasonal rank for July in column two and the relative strength rank in column 3. The combined rank is in the last column. We can see that United Health is ranked seventh and second respectively and number one overall.

Potential Strongest Performers in the DJIA Stocks in the Month of July

Of the strongest, these stocks show strong relative strength and are considered buys for the month:

United Health

Amgen

IBM

Visa

Coca Cola

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

Intel

Travelers

Walgreen-Boots

Boeing

Caterpillar