Introduction

History shows Sir Isaac Newton not only to have excelled as a Mathematician and physicist, but also to be a skilled astronomer, alchemist, theologian, and author.

Many who have studied Newton’s history know that he published a book called “Opticks” back in 1704, expounding his corpuscular theory of light. He considered light to be made up of extremely subtle corpuscles, that ordinary matter was made of grosser corpuscles and speculated that through a kind of alchemical transmutation. As he puts it, “Are not gross Bodies and Light convertible into one another … and may not Bodies receive much of their Activity from the Particles of Light which enter their Composition?”  

Newton also constructed a primitive form of a frictional electrostatic generator using a glass globe. He was the first to show a diagram using a prism as a beam expander, and also the use of multiple-prism arrays.

Fast forward to October 2022, in homage to the great Isaac Newton, I am now unveiling my first technical Stock list, which on a subtle play on Newton’s Opticks, will be called “Upticks.”  This will be an intermediate-term technically derived stock list of some of my favorite liquid names within various sectors of the S&P 500 which I feel might offer attractive risk/reward opportunities at this stage of the market.

These ideas are largely based on stocks at/near 52-week highs which are showing excellent technical structure and little evidence of technical deterioration.   However, in some cases, I will elect to buy stocks which are extreme laggards, if my work shows that they’re primed to begin moving sharply off the lows following initial consolidation.  Note, stocks of this sort are far more likely to be tactical longs than buy-and-hold positions.  However, largely, this list comprises my thinking of the best stocks within most sectors of the S&P 500.

The duration for these selections will largely be 4-6 weeks and hopefully longer.  I have included technical targets as well as stops which are provided for the investor’s use for those who wish to utilize these.   My stops will be strictly adhered to, and any stock that drops under a stop on a daily close will be removed from the list.   Upside targets are guidelines only.  In some cases, these might prove to be premature to sell stocks that have reached these levels, and I shall address via email when stocks are getting close to targets and whether these targets will be adjusted and/or stops moved up, so as to protect profits.

The methodology used for selection of stocks

  • Relative strength vs sector and index
  • At/near 26-week and/or 52-week highs
  • Positive momentum and/or Upward sloping moving averages on multiple timeframes
  • Lack of DeMark exhaustion on daily, weekly, monthly and/or in combination based on TD Sequential and/or TD Combo indicators
  • DeMark “TD 13 countdown Buys” utilizing TD Sequential and/or TD Combo indicators at/near lows on multiple timeframes
  • Elliott-wave theory
  • Positive momentum divergences (at/near lows for buy candidates)Lack of deterioration within its sector and at/near upper quartile of its annual range
  • Above-average bullish bases for lengthy timeframes which might precede technical breakouts
  • Short-term downtrends within existing intermediate-term uptrends which provide attractive risk/reward opportunities
  • Leading stocks within sectors poised to benefit from cyclical upturns

Stay tuned in the upcoming days: We are about to launch a full section covering The “Upticks” Stock List where you can track performance, find new picks, and learn about Mark Newton’s favorite stocks.

The “Upticks” List

TickerSectorPrice*TargetStop
 REGN -0.39% Health Care746791-860678
 LLY -0.03% Health Care332358-390296
 HUM -0.80% Health Care505573-601454
 ORLY -0.58% Cons Disc732793-862680
 LEN 2.07% Cons Disc8098-11462.5
 ON -2.72% Info Tech7077-8161
 PFG 0.28% Financials7989-9670
 MPC 1.02% Energy108118-12989
 HES 1.39% Energy127140-155100
 GIS 0.45% Staples7885-9074
 MNST 0.14% Staples92100-11485
 FCX 2.48% Materials3138.50-4424.75
*as of 10/5/22
Disclosures (show)

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