Dow Stocks To Trade In November

Here is how November breaks down based upon the DJIA from 1885:

All Novembers: 58.8%

Election Year Plus Two Years: 60.3%

Decennial Pattern: 69.2%

Both Election and Decennial Pattern: 66.7%

Here are the cycles-based trade recommendations for the DJIA stocks in this month. In October, the long trades returned an average of 11.2% versus a change of 14.4% in the DJIA in comparison to a return of 11.3% for the short sales. Over the last 33 months, the long stocks have risen by an amount about 60% greater than that of the short sales and 28% over the DJIA. The short sales were net negative over that time period at -16%.

For this month, the cycle/relative strength concept is applied. First, the Dow Jones 30 stocks are ranked from the potential best performer to the worst. 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 screen combines the seasonal rank for the next month in column two and the relative strength rank in column 3. The combined rank is in the last column. We can see that Caterpillar is ranked fifth and second respectively and number one overall.

Potential Strongest Performers in the DJIA Stocks in the Month

Potential Weakest Performers in the DJIA Stocks in the Month