For this month, the cycle/relative strength concept is applied. First, the Dow Jones 30 stocks are ranked from the best performer to the worst by calculating the expected return in that month. The top best traditional performers in the month were then screened for relative strength by a unique measure that sorts by several relevant time periods. Those that pass both screens are buys for the month. The stocks that are both weak monthly performers and weak relative performers are short sales for the month.

The markets are expected to rally, so the longs are favored.

This process has been applied to the Dow Jones 30 stocks by buying the top five rated stocks and by shorting the five lowest rated stocks. From January of 2020, the top five long stocks have risen by an amount about 67% greater than that of the short sales and 27% over the DJIA. The short sales were net negative over that time period at -13%.

Here are the top five long recommendations for this month:

Boeing-BA

United Health-UNH

Visa-V

Disney-DIS

Microsoft-MSFT

Here are the top five short recommendations for this month:

Chevron-CVX

Walgreen Boots-WBA

Walmart-WMT

Cisco-CSCO

McDonalds-MCD

Boeing is the highest-ranked DJIA stock in this month. The stock has been up more often in December, almost 68% over the last 43 years, than in any other month. The weekly dynamic cycle is reaching buy mode on December 5th and rises through the month.

Boeing Weekly

Chevron is the lowest-ranked DJIA stock in this month. The stock is 29th in both seasonality and in relative strength. This technical picture is weak.

Chevron Weekly

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