TOP STOCKS 2019 10TH EDITION Shift Gears When the Market Turns TOP STOCKS 2019 Shift Gears When the Market Turns 10TH EDITION Disclosure The data, charts, statements, and all other content presented here have been obtained or derived from original or from recognized statistical and/or trade sources. There is no guarantee to the accuracy of this information and it may possibly be incomplete and condensed. The opinions expressed are based upon study and interpretation of available data. This is not a prospectus; no offer on our part with respect to the sale or purchase of any securities is intended or implied, and nothing contained herein is to be construed as a recommendation to buy or sell any securities. All charts in this presentation are intended to be used, and were selected based on their educational value, as a tool to assist investors in identifying stock behaviors and trends worthy of further review. 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TOP STOCKS 2019 Table of Contents Shift Gears When the Market Turns 10TH EDITION A Letter from Scott O’Neil 5 Market Index Charts 6 2019 Year-in-Review 14 Post-Analysis: Improve with Every Trade 16 Featured Stocks: Introduction 23 Annotated Charts 24 Featured Stock Charts 32 Complete List of Stocks 172 Index 181 - 3 - - 4 - TOP STOCKS 2019 Shift Gears When the Market Turns A Letter from Scott O’Neil “You will always get better as long as you are willing to do a post-evaluation on your decisions to learn from your mistakes.” — William J. O’Neil Ten years ago, MarketSmith published our first Top Stocks book as a powerful reminder: the companies that change the way we live, a resource to inspire your post-analysis and help you learn from the work and play often produce game-changing stocks. top-performing stocks of the past year. This year’s edition features 70 of the year’s best stocks illustrated with charts and articles, a There are many lessons to be learned from the top stocks of 2019. Year-In-Review highlighting key news events and an infographic First and foremost, if the market shifts, shift with it. You can be right outlining the essential steps of good post-analysis. about a stock in the long run but still lose money in the short term. Be prepared to take profits if a trade isn’t working or if the market This past year ended as it began: with a strong uptrend. The 3 main changes direction; that same stock will still be there when a new indexes finished near record highs across the board. The Nasdaq uptrend begins. gained 35.2%, the S&P 500 climbed 28.9% and DJIA rose 22.3%. It’s what happened in between that tested investors. This year Another important reminder: ignore the media pundits and the especially, knowing when to shift the gears of your trading strategy sensational headlines. If you went to cash because of endless was crucial to growing your profits. reports of the yield curve inversion and all the opinions about a looming recession, then you missed out on one of the best overall A booming economy and continued shifts in monetary policy helped markets in years. Ignore the prognosticators, follow your rules, spark big gains in the early part of the year. While consolidation watch the market and respond accordingly. was expected after such a strong move, the mid-year shift became more turbulent than investors anticipated. With the added A new year is the perfect time to refine your process and sharpen uncertainty of a U.S.-China trade war, leading sectors like software your investing skills. Here’s to a strong and prosperous 2020! and semiconductors fell out of favor as defensive plays showed a resurgence. The market shifted yet again in Q4 and growth was Best Returns, back in fashion, powering the indexes into new high ground. Software, retail, semiconductor and biotech stocks emerged as big W. Scott O’Neil winners in 2019. New technological advancements like 5G, cloud President, MarketSmith, Incorporated computing and AI drove many of 2019’s top-performing stocks. It’s - 5 - S&P 500 Index-Daily © 2020 MarketSmith, Incorporated. [email protected] 12.31.2019 - 6 - S&P 500 Index-Weekly © 2020 MarketSmith, Incorporated. [email protected] 12.31.2019 - 7 - Nasdaq Composite-Daily © 2020 MarketSmith, Incorporated. [email protected] 12.31.2019 - 8 - Nasdaq Composite-Weekly © 2020 MarketSmith, Incorporated. [email protected] 12.31.2019 - 9 - Dow Jones Industrial Average-Daily © 2020 MarketSmith, Incorporated. [email protected] 12.31.2019 - 10 - Dow Jones Industrial Average-Weekly © 2020 MarketSmith, Incorporated. [email protected] 12.31.2019 - 11 - NYSE Composite-Daily © 2020 MarketSmith, Incorporated. [email protected] 12.31.2019 - 12 - NYSE Composite-Weekly © 2020 MarketSmith, Incorporated. [email protected] 12.31.2019 - 13 - 2019: One Of The Best Years Of The Decade A strong economy, interest-rate cuts helped the stock market overcome tariffs and other bumps. The year started with the bottom of a sharp correction. 40% January February March April May June January 2 February 14 March 8 April 5 May 1 June 3 Apple sharply cuts its sales forecast for Amazon.com cancels plans to build a U.S. payrolls grow by 20,000 in U.S. employers add 196,000 jobs in Powell signals that policymakers expect Alphabet, Amazon.com, Facebook and the December-ended quarter to $84 headquarters in New York City, citing February, far below expectations of March, beating forecasts and alleviating core inflation to rise back to 2% without other major technology stocks sell billion from a prior guidance of $89 political opposition to the project. 175,000. The report fuels worries of a worries of a slowdown. Wages rise an interest-rate cut. Stocks drop as off on worries that U.S. authorities bil to $93 bil. CEO Tim Cook blames Amazon says it will proceed with HQ global economic slowdown. 3.2%. hopes fade for a rate cut in 2019. are considering antitrust and other disappointing iPhone sales, especially projects in Virginia and Tennessee. regulatory moves against the big tech in China. companies. March 10 April 11 May 3 February 22 Ethiopian Airlines 737 Max 8 crashes Disney unveils Disney+, its new Unemployment rate falls to a 50-year January 3 Kraft Heinz shares plunge 27.5% after mysteriously after takeoff, the second streaming service with a vast content low of 3.6% as U.S. payrolls swell by June 4 Bristol-Myers Squibb makes a $74 the company writes down the value of crash of that Boeing model in less than library, and a monthly fee of $6.99, well 263,000 — well above forecasts. Powell suggests a summer rate cut as billion offer to acquire Celgene. The some of its top brands by $15.4 billion. five months. Boeing shares plunge below Netflix. Disney stock soars 11.5% the U.S. faces a trade standoff with deal creates a leading provider of cancer An SEC subpoena and weak Q4 results afterward as eventually the entire fleet the next day. China. Powell says the Fed “will act as treatments. add to the company’s woes, as Kraft of Max-series planes is grounded. The appropriate to sustain the expansion.” 30% faces changing consumer tastes. company also faces possible order cancelations. April 24 January 4 The Nasdaq hits all-time high after the June 7 Fed Chairman Powell says the Fed will February 23 composite and the S&P 500 reach Job growth slows to 75,000 in May, be responsive to market moves that are Danaher announces it will acquire the March 18 new closing highs in the well below estimates. The slowdown giving mixed signals, suggesting it may biopharmaceuticals business of General Fidelity National Information Services prior session. raises odds for an interest-rate cut, pause rate hikes. Electric in a deal valued at $21.4 billion. agrees to buy Worldpay for $35 sending stocks sharply higher. The sale is part of GE’s strategy to shed billion in cash and stock, part of a Employers add 312,000 jobs in biopharma assets. wave of consolidation in the payment April 25 December, well above views and the processing industry. Microsoft’s market value tops $1 trillion, May 6 June 8 best increase in 10 months. Wages the highest in the market, after shares Trump threatens to escalate tariffs after U.S. halts plans for tariffs on Mexican rise 3.2%. February 24 jump to record high on strong earnings China backs away from key promises in imports after that country agrees to President Trump delays a March 1 March 20 and guidance. trade talks. Higher tariffs go into effect take steps to slow the flow of illegal deadline to impose new tariffs on Fed signals it will not raise interest rates May 10; China retaliates with duties immigrants.