This year, some Dow Jones Industrial Averages have become a naughty and nice list.
Piper Sandler’s chief market technician Craig Johnson and options’ sympler trading director Daniel Shay checked the list twice instead of once and picked a favorite for the New Year.
“Stay on the winner here,” Johnson said on CNBC’s “Trading country“On Wednesday.” Apple definitely made a nice list of Santa this year. “
Apple is Dow’s best performer in 2020. Shares rose 78%, almost doubling Microsoft’s profits. Inventory is about 5% from the record set in early September.
“If you look at the chart, it’s still on a very clear uptrend, and you can see that we’re back, successful in retesting, and back in those old highs,” Johnson said. I am. .. “So, from my point of view, I’m going to stick with Apple. I think it’s a gift that won’t be returned this year.”
Shay said in the same interview that he is helping Microsoft to make more money in 2021.
“Microsoft is showing consistent revenue growth, and two to four weeks before its report, it’s also showing very consistent revenue growth. So, personally, I bought a long call in the revenue series. , [implied volatility], In addition to selling Put a credit spread Enter the earnings report. “
Microsoft plans to report revenue in early February.
When it comes to the worst performers, Shay has a lot of optimism around the turnaround.
“Unfortunately, we may see some backlash from Boeing, but not the other two,” Shay said.
Boeing and Walgreens were down 32% in 2020 and Chevron was down 29%.
Disclosure: Shay holds MSFT.
Top performers have room to run in 2021
https://www.cnbc.com/2020/12/23/dow-stocks-in-2020-top-performers-have-more-room-to-run-in-2021.html Top performers have room to run in 2021