I hope you had a great week! The key driver of risk markets this week can be seen in the move in USDCNH, with the Chinese Renminbi extending its decline to -3.5% this month.
Global equities have simultaneously weakened, particularly on the Hong Kong and other Asian exchanges. Here is the China CSI 300 index:
Meanwhile, gold has endured a torrid week down at $1250 per ounce ($100 below the short trade idea we generated in our Trading Club analysis back in April).
So against the backdrop of declines across multiple asset classes, in this week’s Trading Club video I discussed 4 potential short selling opportunities for the watch list using the Company Analysis model from our Million Dollar Traders Course. (Note for our new blog visitors: all information and examples discussed here are for educational purposes ONLY. This is not investment advice. Please see our full disclaimer, it is available at all times in the footer of our website as well for your convenience.)
In my 40 minute analysis I looked at four different companies from a range of different sectors including health care, energy, media and real estate, starting with a stock screen that I put together to find a pool of low quality stocks. Here is just a small selection of the screen which featured around 50 results:
Taking a handful of these names, we applied our Company Analysis Checklist to determine which companies looked like the best stocks to short. This considered the Management, Products, Financial Health, Valuation and Geographical Exposure of each company, assigning a +1, 0 or -1 score before summing these to see whether the total was negative (and as such, a short candidate).
And here are the 3 results that passed our Checklist trading process (well, the charts with the tickers concealed as a courtesy to our paying members).
If you would like to watch the full analysis, including live technical analysis on the charts plus many high quality videos more in our archive, you can do so by joining us as a Trading Club member. And of course, if you are serious about improving your investing you can learn about this process plus more in stocks, gold and FOREX trading with the Million Dollar Traders Course presented by Lex himself!
Have a great weekend,
James Helliwell | Chief Investment Strategist
Disclaimer: Our service is intended for educational and informational purposes only and should not be considered investment advice. Do not make any decisions based on the articles and material presented on www.lexvandam.com and never trade with money you cannot afford to lose. We cannot be held responsible for your trading results. For more information, please check Risk Disclosure - T&C.