George Soros Portfolio: 5 Top George Soros Stocks in 2017

George Soros StocksGeorge Soros Stocks

George Soros is in the limelight to begin 2017 and it has little do with George Soros’s net worth of $24.9 billion, or his ranking on the Forbes list. The media is having a frenzy with the $1.0 billion in losses that were incurred in the Soros Fund Management LLC holdings after Donald Trump surprised the world and won the presidential election.

The sources of these losses were due to how the George Soros portfolio was positioned  in anticipation of weakness following the presidential election result. He believed that a Donald Trump win would roil the markets. This short-term view couldn’t have been more flawed, as the stock market experienced a tremendous rally that broke many records in the process. This rally was supported by the notion that the President-elect’s economic polices would provide a much-needed boost to the country’s stagnant growth.

Nobody is perfect, not even the infamous George Soros, and we are all prone to making mistakes. This media frenzy surrounding the George Soros-Trump debacle did lead to a substantial loss in his Soros Fund Management holdings, but this does not mean he is out for the count. The man has become a staple in the investment world for a reason, and his foresight and investment strategies are a prime example.

I have delved deep into Soros Fund Management holdings and five names really stand out. I have been following and reporting on some these George Soros stocks for some time, and these stand-outs are all technically set up for gains in 2017.

My investment philosophy relies heavily on technical analysis. This is a method of investment analysis that relies on historical data to discern trends and forecast future prices. This style of investment analysis differs from George Soros’s investment philosophy, but perhaps there is some solace knowing that we are both bullish on the same stocks. Perhaps my views substantiate his, or perhaps it is the other way around.

Stocks George Soros Is Buying in 2017

The following five George Soros stocks that are being accumulated in the Soros Fund Management holdings are both constructive and technically set up to appreciate. 2017 could turn out to be a banner year for the George Soros portfolio.

1. Barrick Gold Corporation (USA) (NYSE:ABX)

Barrick Gold Corporation (USA) (NYSE:ABX) engages in the production and mining of gold assets, and is the largest public company by market cap. Of all the George Soros stocks I have included this is the only company in the mining sector. Gold mining stocks had an exceptional year in 2016, which finally marked a positive return on the backs of four constructive years of losses. These gains look to continue in 2017, and the following stock chart illustrates the technical reason that supports the notion that Barrick Gold is set to appreciate in 2017.

abx

Chart courtesy of StockCharts.com

The ABX stock chart above illustrates what constitutes as healthy bullish price action. Healthy bullish price action is defined by an impulse wave that takes the price to new heights, which is then followed up by a consolidation wave that unwinds any overbought conditions that were created by the price advance, and then this same wave sets up the next proceeding impulse wave.

This healthy price action is supported by the “MACD” indicator in the lower panel. Moving Average Convergence Divergence (MACD) is a simple and effective trend-following momentum indicator. Signal-line crossings are used to distinguish between bullish and bearish waves.

The MACD signal identified a consolidation wave was set to develop in July when it crossed in a bearish manner, and now this indicator is converging, in which a bullish cross would suggest that a new impulse wave is set to develop. This pending cross is occurring just as price has exited the consolidation wave in an upwards direction, also indicating that a new impulse wave is set to develop.

The theory behind these waves is that a potential price objective can be generated on the premise that once the consolidation pattern is complete, the new impulse wave that is set to develop has a tendency to match the initial impulse wave in length. As a result, the 2017 potential price objective for ABX stock is $31.00, and represents a potential gain of 83%.

The wave structure not only outlines the potential upside, but it can also be used in managing risk. This can be attained by using this lower level in the consolidation pattern. If ABX stock closes below $13.81, it would indicate that bullish implications suggested by the pattern have failed and a bearish view is warranted.

2. Symantec Corporation (NASDAQ:SYMC)

Symantec Corporation (NASDAQ:SYMC) engages in the development of cybersecurity software and services. The hacking allegations that have centered around the presidential elections have identified that cybersecurity needs to be addressed because it is becoming a serious growing concern. The following stock chart supports this notion and illustrates why SYMC stock is set to appreciate in 2017.

symantecc

Chart courtesy of StockCharts.com

This Symantec stock chart illustrates that a significantly large technical pattern has just been completed. This very large rounded bottom that engulfs the stock chart is a reversal pattern that represents a bias change from bearish to bullish. It took 12 years for price to finally return to the previous all-time high that was set in 2004.

Symantec has now finally broken above this level of resistance and is forging a new all-time high. This feat opens up the door to much higher prices and is instrumental in providing a potential price objective. The initial price objective is created by taking the depth of this pattern and extrapolating it above the horizontal resistance line. This generates an initial price objective of $42.00, and represents a 60% gain from current prices.

This constructive pattern is also very effective in defining the level that is required in order to manage risk. Now that price has finally managed to penetrate resistance, it should act as a level of support if SYMC stock were to return to test it from above. If this new implied level of support fails to hold and Symantec stock closes below it, this action would indicate that the breakout has failed and it would negate the bullish view and support a bearish one.

3. Netflix, Inc. (NASDAQ:NFLX)

Netflix, Inc. (NASDAQ:NFLX) provides internet-based content at a fraction of the cost that cable companies charge. The shift to this cost-effective service continues on a global scale, and the following stock chart illustrates a bullish pattern that suggests Netflix stock is set to continue its ascent in 2017, and will remain a staple in the George Soros portfolio.

nefalc

Chart courtesy of StockCharts.com

The NFLX stock chart above is another example of bullish price action that contains an impulse wave and a consolidation wave. The current consolidation wave has been in development for the last 18 months and is finally complete. The completion of this pattern was indicated when price exited the pattern in an upwards direction. This move was refuted many times at the $130.00 mark, but 2017 is off to an excellent start as Netflix stock is forging new all-time highs.

This is another prime example of healthy price action, where a consolidation pattern that has contained price for 1.5 years now suggests that an impressive impulse wave is set to follow. The theory of price waves applies to this example as well, and the new impulse wave that is now in development is set to mirror the initial impulse wave. This creates the potential price objective of $165.00, and represents a return of 23% from current levels.

The rationale for managing risk is similar to the previous examples. Now that Netflix stock has finally broken above the $130.00 resistance, this price point should now act as support. Failure to remain above $130.00 on a weekly basis would indicate that the breakout has failed, negating the bullish view.

4. TiVo Corp (NASDAQ:TIVO)

TiVo Corp (NASDAQ:TIVO) is cloud-based software and service provider. Its set-top boxes provide live and recorded video on demand content. TiVo is now strategically aligned with Netflix, and this significantly broadens its growth prospects. The TiVo stock chart supports this notion as price is acting in a constructive manner.

teevo

Chart courtesy of StockCharts.com

Of all the George Soros stocks that have been highlighted thus far, TiVo stock is the only one that has yet to break out. In order to achieve this breakout, TiVo stock would need to close above the resistance level that is highlighted above at $23.75.

The constructive healthy price action that sits below this level suggests that this level of resistance is going to be tested in the near future. There are numerous factors on the price chart that support this test, and this first indication began when TiVo stock traded above the 200-day simple moving average (SMA), and has remained above it since. The 200-day SMA is the dividing line between stocks trading in a bull market versus stocks trading in a bear market.

The second indication that resistance will be tested is from the healthy price action consisting of impulse waves and consolidation waves that litter the stock chart. The current consolidation wave is setting up right above the 200-day moving average, and a bullish resolution would see price exiting the pattern in an upward direction. This would suggest that resistance will be put to a test.

A break above resistance would set the wheels in motion to much higher prices.

From a risk standpoint, the 200-day moving average has supported price since December 2015, and two consecutive closes below this moving average would negate any bullish developments on the TiVo stock chart, and would indicate that lower prices were set to prevail.

5. Alphabet Inc (NASDAQ:GOOG)

Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) needs no introduction as the search engine turned holding company is on the leading edge of innovation. Its pursuit of innovation and the expansion of its business segments is why the company continues to experience exceptional levels of growth. The GOOG stock chart supports this notion and is illustrated below.

alphaa

Chart courtesy of StockCharts.com

Of all the the George Soros stocks, this one has to be my favorite. This company has a stock chart that is so spectacular that a simple uptrend line is the only tool I need. An uptrend that has supported the price since Google stock first went public, this line symbolizes the entire bull market in Google stock, and it is created by connecting the troughs on the price chart.

Google stock has never traded below this trend line, but it has tested it on numerous occasions, which have proven to be buying opportunities.

The trend line also serves to define risk at any given movement in time. Failing to hold this trend line would imply that the bull market in Google stock has ended and bearish implications are set to follow. Given its weight and significance in the indices, I can only assume that a break below this uptrend line would have a bearish implication for the broader stock markets as well.

So, as long as Google stock remains above the uptrend line, the bullish trend towards higher prices is set to continue.

Final Thoughts on These George Soros Stocks

I chose these five George Soros stocks from the ones that George Soros is buying in 2017 because all of them presented a compelling technical reason that supports further gains this year, and more importantly, risk can be managed with ease. Risk is the single most important aspect when initiating any investment strategy and the setups on the stock charts above can be easily identified if the bullish patterns begin to fail.

For the most part, these George Soros portfolio stocks act as bellwethers and their bullish price objectives suggest that there may be some substantial gains in 2017. As a result, I believe that George Soros and Soros Fund Management holdings are set to undo some of the negative rhetoric that they have endured in 2016. Perhaps there is a lesson to be learned: No one is perfect, and the smartest people learn from their mistakes and move on.