Stocks This Week: Buy Dollar Tree And Micron Technology On The Monday Close

Market timing is very tricky at this time. There was a projected turning point today, and the coming week has been seasonally strong. There is a good likelihood that the market will sell off on Monday, so nimble traders will want to short today’s close. On Monday’s close, I would cover short positions and buy. There are two long trading recommendations below. Kindly note that these trades bring a high degree of risk.

The NASDAQ

NDAQ
retraced 38.2% of its entire 2018-2021 rally. This is a minimum expected decline in this situation. This condition likely signals that the bulk of the selling has occurred for the near term. On Thursday, there was a washout number of new lows (1344) versus new highs (29), another indication of a low.

Here is a screen of stocks that have performed best in the coming period. To select some shares for short-term trades, the following strategy is employed. The best-performers in the chosen time period with at least 20 years of price data are calculated and are presented below. The issues are ranked by the percentage of time periods in which the stock rose.

Bullish NASDAQ Stocks from February 25^th to March 4^th

From this list, the stocks or ETFs are screened for relative strength and by dynamic cycles. The latter term refers to the most active cycles that are generating profits now.

Dollar Tree

DLTR
Stores is number two on the screen. The stock has risen almost 70% of the time in the coming week over the last 26 years. The expected return has been 1.1%. On the NASDAQ relative strength screen, this stock is in tenth place; relative strength has been rising since the autumn of 2021. The share price has fallen by 3.6% in 2022 versus the approximately 14% drop in the NASDAQ indices. In March, price has risen 69% of the time, one of the four strongest months in any year. Price could rise closer to $140.

Chart 1

Micron is ranked number six in seasonal performance and number seventeen in relative strength. In 2022, the stock has not declined by as much as the NASDAQ index. Shares have risen 65% of the time in the coming week. The $95 area is likely to be challenged.

Chart 2