Stock Watch

Posted by Mike Richards on 03/04/2018 0 Comments

In my last article – (S&P500 – Don’t Believe the Doom and Gloom – YET!), I summarized in detail my expectations for this miner degree 4th wave corrective move in the S&P 500 Index to the 2470 – 2430 area, with an outside chance it could reach as low as the 2333 area.  I suggested the next move higher into the November, 2018 time frame should provide for an approximate 30% increase in the S&P500, resulting in a move to the region of 3,200 – 3,300.

So, in anticipation of this move I have scoured various stocks on the prowl for solid and predictable Elliott Wave patterns to provide our subscribers opportunities to take full advantage of this next move up.  Quite obviously the goal is to identify individual stocks that afford much greater performance characteristics than my expectations for the S&P itself.  In this summary, allow me to mention just a few of the many truly great intermediate term opportunities, along with the price entry level and expectation of upside into later this year.

The final move lower will be rather abrupt, and I suspect will spook many investors to the extent they don’t take action to position their portfolios into the drop, which in the opinion of this analyst, would be a mistake. In the words of Warren Buffet – “Investors pay a very dear price for a cheery consensus”.  There won’t be much consensus in the coming few weeks as this occurs, which is exactly why we’ll be buying when others are selling.   

American Express Company (SYM: AXP)

AXP is in a (c) wave of its miner degree 4th with a price target and entry level of $82-$83 per share.  Price target for the completion of intermediate degree (5) of primary degree wave (3) is $125, expected into later this year, for an expected return of 52%.  

Alphabet Inc. Class A (SYM: GOOGL)

GOOGL is in its miner degree 4th, and has hit our initial price target of $980-$988, resulting in us taking a long position.  Below current levels, GOOGL can reach as low as $938.  Price target for completion of intermediate degree (5) of primary degree wave (3) is $1,598, expected into later this year for an expected return of 62%.

Walt Disney Company (SYM: DIS)

Like all the stocks listed herein, DIS is in its miner degree 4th with a price target of $76 - $88, with a possibility it will hold the $93 level.  A move to $88 would result in us going long DIS with a price target of $207, of an expected return of 159%.  DIS is quite obviously one that is at the top of our list for potential overall return. 

Tesla Inc. (SYM: TSLA)

TSLA is setting up an attractive entry in the $240 -$244 region, at which level we will go long for a price target later this year of $434 - $484, or approximately 65% or greater.  

In conclusion, there are many other equally attractive opportunities setting up for the investor who’s willing to take a position while others are running for the exit door.  While it’s easier to simply take a position in an index ETF, the returns these individual stocks offer, and many others just like them should more than reward investors for going to the additional trouble to buy individual stocks.  We recommend not greater than 5% of one’s capital be allocated to any individual stock, purchasing a basket of 8-12 stocks can provide diversification and enable one to maximize performance in what we believe will be the last run higher that is seen for the next several years.

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