Weekly Commentary - November 12, 2023

Weekly Wrap up:

After the best week for stocks in this year, indexes continued to edge higher. Oil prices fell as Israel-Hammas war continued. During the week, the S&P 500 index was up by 1.31%, Nasdaq Composite advanced 2.1% while smaller Stocks Index Russell 2000 continued to show weakness as it managed to increase by 1.1% on Friday but for the week it sank by 3.15%. Friday was in particular a good day for Nasdaq Composite in particular which had its best day since May.

Advancers outnumbered decliners by 3:1 on New York Stock Exchange and by 2:1 on the Nasdaq thus improving the market breadth. Another measure for Market breadth the Invesco S&P 500 Equal Weight ETF (RSP) fared better with a gain of 1.2% on Friday but still closed down by 0.6% for the week.

Recent Performance:

Performance of some of the stocks mentioned in last two weeks is as follows:

Stock: 5-days Performance, 15 days Performance

MSFT: 4.56% 12.74%

TNK: 0.75% 10.45%

TW: 1.39% 6.11%

INSW: -3.99% -0.81%

META: 4.31% 14.02%

NVO: -0.91% 3.11%

WFRD: -4.15% 2.25%

CVX: -3.25% -7.62%

Looks like all laggards are in the Energy sector which is under pressure amid falling oil prices, nevertheless we maintain our stance on Chevron and ON Semi being the long-term holdings. Chevron mainly due to its high yield as well.

Actionable Stocks:

With market bulls charging, many stocks are showing on our screens or setting up buy ranges as per the TR indicator. We need to be a bit cautious about the upcoming week which will see monthly options expiration on Friday. Typically, strong stocks hit pauses in this week as the market makers try to reduce the in-the-money Call premiums (a phenomenon also known as the Maximum Pain).

COST:

Retail Chain Costco has been showing strong action since last month. It is one of those long-term stocks which are slow movers but overall provides a long-term value to its shareholders. Currently at 577.12 it is poised to challenge its all-time high of 611 achieved last March. Dividend yield at 0.69% is not exciting but nevertheless stock is showing positive action.

MSFT:

Microsoft stock was mentioned in our Oct 18th message and Oct 27 commentary has set an all-time high. The stock is still in a reasonable buy range and is capitalizing on its AI (Artificial Intelligence) initiatives. It is challenging Apple to take throne of the world's most valuable company in terms of market capitalization.

GE:

The old industrial powerhouse is moving again and poised to make a hew high if market remains bullish. With earnings out of way, this could be a good time to take a position in GE.

NVO:

Mentioned earlier on Oct 27 as a sound pharma stock, we still believe it has a long run ahead because of the strong pipeline of medicines such as the weight reducing pills "Ozempic" and "Wegovy".

NVDA:

Nvidia is again moving and continue to be our favorite as a long-term growth stock. However, its earnings announcement is around the corner scheduled for November 21. A better strategy could be to wait till earnings ad till stock pulls back to its 20D EMA or 50 Days EMA line.

Stocks Under Watch:

TSM

World's largest dedicated integrated IC circuit foundry is moving after a long consolidation. It also offers a 1.85% yield as well. On our watchlist along with ON

ON:

ON stock is taking its time to absorb recent shocks but is still a long-term leader and on our Stocks under watch.

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MJ Software LLC

Disclaimer:

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