Election Day is finally here!
The stock market rallied yesterday and today, but I believe this strength is the quiet before the storm. It is widely anticipated that the Republicans will take control of Congress, and if that happens, we will probably get more gridlock on Capitol Hill – and Wall Street loves gridlock. No matter what the results are, I suspect there will be a violent response tomorrow, and most likely, it will be to the upside.
The other big factor in play this week is the Consumer Price Index (CPI) for October, which will be released Thursday morning. Economists expect headline CPI in October to rise 0.6% on a month-to-month basis, up from 0.4% in the previous month, and core inflation is anticipated to increase 0.5%, versus 0.6% in September. If the inflation data has cooled a bit, this could also spark a strong market rally.
In preparation of the midterm election and CPI report, I’ve taken a close look at the latest data on institutional buying pressure and each company’s fundamental health in Portfolio Grader on 99 blue chip stocks over the weekend. Of these 99 stocks, 46 were upgraded from a Hold (C-rating) to a Buy (B-rating) and another 17 stocks were upgraded from a Sell (D-rating) to a Hold.
I’ve included the first 10 stocks that were upgraded from a Hold to a Buy below, but you can click here to find the full list of 99 stocks – including their Fundamental Grade and Quantitative Grade. Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and act accordingly.
|Ticker||Company Name||Total Grade|
|APD||Air Products and Chemicals, Inc.||B|
|AXON||Axon Enterprise Inc||B|
|BBVA||Banco Bilbao Vizcaya Argentaria, S.A. Sponsored ADR||B|
|CBOE||Cboe Global Markets Inc||B|
|CNI||Canadian National Railway Company||B|
|DGX||Quest Diagnostics Incorporated||B|
|EA||Electronic Arts Inc.||B|
|EC||Ecopetrol SA Sponsored ADR||B|
Now, it’s not just the midterms and inflation data that can affect a stock’s grade (or price). There are plenty of factors that can impact a stock in the short term. However, I determined that there are only eight “predictive factors” that really matter. That is, if a stock has a specific eight “predictive factors” lined up in the right combination, it has a high likelihood of going on a massive run.
And that’s the core idea behind my latest initiative: Project Oracle.
Project Oracle is a stock research system that uses a cutting-edge technology to sift and sort through all 6,000 stocks on the market to determine which ones have all eight factors and are poised to soar.
And just this morning, I released a special briefing on all of it.
In this special briefing, I discuss how it finds the fastest-moving stocks on the market, how it leverages the “secret ingredient” behind some of my best calls, and how to access the new opportunities it’s alerted me to. I also reveal an explosive new stock pick that I believe will be the winner in the electric vehicle (EV) space – ticker symbol and all – for FREE. Click here to view my briefing now.
The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
Quest Diagnostics Incorporated (DGX), Electronic Arts Inc. (EA)