Move over, tech stocks!


Market Signal: Green

When I ran the Python code today and updated the momentum ranking for this week, I learned that 8 stocks had to be sold, because they were no longer in the top 20% of the universe. I did not quite expect this and double-checked the calculations in Excel.

Disclaimer

For example, I looked at IBP and downloaded the closing prices of the last 90 days from Yahoo Finance. Then I used these values to calculate the adjusted slope in Excel and luckily I got the same result in the Python calculations (0.579). In the ranking of last week, the last company to make it to the top 20% had an adjusted slope of 0.5812. In this week it was at 0.62

As of now, I am looking at the top 20% of the universe. This also includes companies that had a gap of +/- 15% in the last 90 trading days therefore do not qualify to be in my portfolio. At the moment there are quite a few companies among the top 20% where this applies. Maybe it would be more sensible to look at the top 20% of the universe without companies that are disqualified because of these up/down gaps?

Here is this week’s ranking

  • Sold:

    • IBP
    • WHR
    • TOL
    • MITK
    • CC
    • UPS
    • PFSI
    • MOS (no longer in top 20%)
  • Bought:

    • BYD (Boyd Gaming Corp (S&P 400))
    • IVZ (Invesco Plc (S&P 500))
    • DFS (Discover Financial Services (S&P 500))
    • PENN (Penn Natl Gaming Inc (S&P 400))
    • GM (General Motors Company (S&P 500))
    • UAA (Under Armour (S&P 500))
    • ADNT (Adient Plc (S&P 400))
    • R (Ryder System (S&P 400))

Current portfolio (finviz):

Symbol Name Index Sector MC Dist to 52w High pct
TGT Target Corporation S&P 500 Consumer Defensive 89.08B -1.3% 4.0%
DE Deere & Company S&P 500 Industrials 82.41B -1.8% 4.0%
CARR Carrier Global Corporation S&P 500 Industrials 33.9B -6.5% 3.6%
IAA IAA, Inc. S&P 400 Industrials 8.01B -7.6% 3.6%
APAM Artisan Partners Asset Management Inc. Barrons 400 Financial Services 3.67B -4.9% 3.4%
PWR Quanta Services, Inc. S&P 500 Industrials 9.73B -2.0% 3.1%
SLM SLM Corporation S&P 400 Financial Services 4.08B -12.0% 3.1%
OMF OneMain Holdings, Inc. Barrons 400 Financial Services 5.42B -20.8% 3.1%
GNRC Generac Holdings Inc. S&P 400 Industrials 13.54B -6.4% 3.1%
GM General Motors Company S&P 500 Consumer Cyclical 66.2B -3.7% 3.1%
FCX Freeport-McMoRan Inc. S&P 500 Basic Materials 33.53B -5.4% 2.9%
EVR Evercore Inc. S&P 400 Financial Services 3.83B -3.6% 2.9%
TPR Tapestry, Inc. S&P 500 Consumer Cyclical 8.32B -5.0% 2.8%
FDX FedEx Corporation S&P 500 Industrials 77.55B -3.1% 2.8%
R Ryder System, Inc. S&P 400 Industrials 3.37B -4.1% 2.8%
WMS Advanced Drainage Systems, Inc. Barrons 400 Industrials 4.93B -5.4% 2.8%
DAR Darling Ingredients Inc. S&P 400 Consumer Defensive 7.85B -5.1% 2.7%
WRK WestRock Company S&P 500 Consumer Cyclical 11.67B -4.7% 2.7%
IVZ Invesco Ltd. S&P 500 Financial Services 7.81B -14.1% 2.7%
BLD TopBuild Corp. S&P 400 Industrials 6.1B -1.8% 2.7%
DY Dycom Industries, Inc. S&P 400 Industrials 2.05B -0.6% 2.6%
AEO American Eagle Outfitters, Inc. S&P 400 Consumer Cyclical 2.95B -3.4% 2.6%
GRBK Green Brick Partners, Inc. Barrons 400 Consumer Cyclical 1.21B -2.0% 2.6%
CROX Crocs, Inc. Barrons 400 Consumer Cyclical 4.15B -2.2% 2.6%
UAA Under Armour, Inc. S&P 500 Consumer Cyclical 7.26B -24.7% 2.5%
DFS Discover Financial Services S&P 500 Financial Services 24.84B -10.6% 2.5%
NVDA NVIDIA Corporation S&P 500 Technology 320.95B -10.8% 2.3%
BYD Boyd Gaming Corporation S&P 400 Consumer Cyclical 4.42B -4.4% 2.3%
ADNT Adient plc S&P 400 Consumer Cyclical 3.06B -9.2% 2.2%
GPS The Gap, Inc. S&P 500 Consumer Cyclical 9.89B -2.7% 2.2%
OLN Olin Corporation S&P 400 Basic Materials 3.67B -4.8% 2.2%
PCTY Paylocity Holding Corporation S&P 400 Technology 10.52B -6.9% 2.1%
CZR Caesars Entertainment, Inc. S&P 400 Consumer Cyclical 14.69B -10.7% 2.0%
ENPH Enphase Energy, Inc. S&P 400 Technology 17.1B -3.1% 1.8%
FSLR First Solar, Inc. S&P 400 Technology 9.51B -11.2% 1.7%
PENN Penn National Gaming, Inc. S&P 400 Consumer Cyclical 11.62B -6.0% 1.6%
HIBB Hibbett Sports, Inc. Barrons 400 Consumer Cyclical 732.72M -23.1% 1.4%
cash Cash Cash Cash 0.0% 1.2%

Move over, tech! The share of tech is now at only about 8%.

Current portfolio allocation:

pie title Sector Distribution "Industrials":30.97 "Consumer Cyclical":30.41 "Financial Services":17.71 "Technology":7.85 "Consumer Defensive":6.77 "Basic Materials":5.08 "Cash":1.22


pie title Index Distribution "S&P 400":41.89 "S&P 500":41.1 "Barrons 400":15.79 "Cash":1.22

A rebalancing is due next week.

Happy Thanksgiving!

CW48  2020