Over the course of the week, we made 1 new trades - 0 buys and 1 sells.
Click here for the Momentum Ranking of week 49.
Weekly Trading Activity Update
The S&P 500 continues its streak above the 200-day moving average, marking 273 days in positive territory this week. This situation allows for some portfolio adjustments based on the momentum ranking strategy as outlined by Andreas Clenow in ‘Stocks On The Move’. The strategy helps us navigate the market by focusing on top-ranking stocks based on the annualized adjusted slope, capitalizing on strong performers while limiting exposure to declining ones.
This week, our strategy led to a rebalance of existing positions, with an increase in holdings for stocks like AGX, APP, AXON, and others. We’ve decided to reduce our stakes in CORT and DOCS, despite DOCS showing impressive gains of 11.27% over the past week. Yet, tough decisions need to be made, ensuring optimal portfolio construction adhering to our momentum-based criteria. On the downside, VRT stood out with a loss of 10.21%. We sold our position in CRS, aligning ourselves closely with our disciplined trading approach. Notably, our portfolio maintains a significant amount of cash, positioning ourselves for potential future opportunities.
Our portfolio is currently heavily weighted towards the Industrials sector, with notable top holdings including TPL, UAL, and PAYO. United Airlines (UAL) continues to show resilience despite industry challenges, while TPL and PAYO present steady growth prospects. This diversified exposure within the Industrials sector provides a balanced approach, aiming to capture broad economic growth while mitigating risk.
In conclusion, this week’s adjustments reflect our ongoing commitment to a disciplined, rules-based investing strategy. We are keenly focused on maintaining a portfolio that aligns with strong momentum stocks while remaining adaptable to market conditions. As always, we welcome your insights or inquiries. Feel free to share any thoughts or questions in the comments below.
This week’s transactions:
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Sold:
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Bought:
- No buys in this week!
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Rebalanced / added:
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Rebalanced / reduced:
Index Distribution:
The S&P 500 sector is where most of our investments are right now.
Current portfolio allocation:
The Industrials sector is now the big cheese in our portfolio.
Weekly sector distribution:
Current portfolio (@finviz):
| Symbol | Name | Index | Sector | MC | Dist to 52w High | pct |
|---|---|---|---|---|---|---|
| TPL | Texas Pacific Land Corporation | S&P 500 | Energy | 35.59B | -12.43% | 0.084 |
| UAL | United Airlines Holdings Inc | S&P 500 | Industrials | 31.86B | -4.64% | 0.067 |
| PAYO | Payoneer Global Inc | Barrons 400 | Technology | 3.81B | -5.49% | 0.064 |
| NCLH | Norwegian Cruise Line Holdings Ltd | S&P 500 | Consumer Cyclical | 12.40B | -1.50% | 0.062 |
| AXON | Axon Enterprise Inc | S&P 500 | Industrials | 49.54B | -0.40% | 0.059 |
| DUOL | Duolingo Inc | S&P 400 | Technology | 15.60B | -2.81% | 0.051 |
| CORT | Corcept Therapeutics Inc | Barrons 400 | Healthcare | 6.14B | -4.90% | 0.051 |
| ALTM | Arcadium Lithium PLC | S&P 400 | Basic Materials | 5.50B | -29.69% | 0.05 |
| GEV | GE Vernova Inc | S&P 500 | Utilities | 91.82B | -6.72% | 0.05 |
| USLM | United States Lime & Minerals Inc | Barrons 400 | Basic Materials | 4.43B | -2.95% | 0.049 |
| LITE | Lumentum Holdings Inc | S&P 400 | Technology | 6.07B | -3.14% | 0.048 |
| STRL | Sterling Infrastructure Inc | Barrons 400 | Industrials | 6.04B | -3.39% | 0.047 |
| DOCS | Doximity Inc | S&P 400 | Healthcare | 9.95B | -13.73% | 0.047 |
| PLTR | Palantir Technologies Inc | S&P 500 | Technology | 159.44B | 3.11% | 0.046 |
| CMPO | CompoSecure Inc | Barrons 400 | Industrials | 1.43B | -1.16% | 0.045 |
| VRT | Vertiv Holdings Co | Barrons 400 | Industrials | 48.65B | -11.02% | 0.04 |
| APP | Applovin Corp | Barrons 400 | Technology | 120.68B | 3.46% | 0.038 |
| AGX | Argan, Inc | Barrons 400 | Industrials | 2.06B | -7.76% | 0.038 |
| VST | Vistra Corp | S&P 500 | Utilities | 52.65B | -8.25% | 0.034 |
| IESC | IES Holdings Inc | Barrons 400 | Industrials | 5.96B | -6.73% | 0.028 |
| cash | Cash | Cash | Cash | – | 161 | 0.003 |
As always, more trades next week!