Strategy
Momentum
US

US Momentum Strategy Historical Updates

1 May 2020
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The US Momentum strategy works on the idea that stock prices that have risen significantly over the past, relative to their peers, tend to continue to outperform. This is known as the momentum effect and has been examined extensively in the academic literature. This strategy takes advantage of this effect by buying the top 10 momentum stocks in the S&P 500.

This page shows historical updates for the US Momentum Strategy.

Latest Update – 01 April 2020

Being the 1st trading day of April, it is time to re-balance our US Momentum portfolio. To begin, the S&P500 closed for the month of March at 2,584.59, well below its 200-day moving average at 3,026.72, meaning that we will continue to hold the ‘defensive portfolio’ for the following month. As a reminder, if the S&P500 is below its 200-day moving average, we sell out of the top 10 momentum stocks, and hold a portfolio comprised of TLT (US treasury bond ETF), UUP (USD Index ETF), and XAUAUD (Australian dollar spot gold).

 

Latest Update – 02 March 2020

Being the 1st trading day of March, it is time to re-balance our US Momentum portfolio. To begin, the S&P500 closed for the month of February at 2,954.22, below its 200-day moving average at 3,047.18, meaning that we will sell our current portfolio of stocks, and move into the ‘defensive portfolio’. The defensive portfolio is made up of three asset classes, being bonds (TLT), the US Dollar (UUP), and the Australian dollar spot gold price (XAUAUD).

For today, we recommend members sell all ten stock holdings, being AAPL, AMD, LRCX, QRVO, CPRT, NVDA, PHM, PAYC, KSU, and TDG. More so, we recommend that members open three new long positions in TLT, UUP, and XAUAUD. Please note that TLT and UUP are US dollar instruments, while the XAUAUD is denominated in Australian dollars. The recommended volume equates to a US$50,000 portfolio.

 

Latest Update – 03 February 2020

Being the 1st trading day of February, it is time to re-balance our US Momentum portfolio. To begin, the S&P500 closed for the month of January well above its 200-day moving average, meaning that we will stay invested in stocks for the month ahead. We have again ranked the stocks within the S&P500, based on our measure of price momentum, and we currently hold six of the top 10.

For today, we need to replace the four stocks in our portfolio that have dropped out of the top 10. As such, we recommend members sell the following stocks at market; KLAC:xnas, TGT:xnys, SWKS:xnas, and AMAT:xnas. These are to be replaced with CPRT:xnas, PHM:xnys, PAYC:xnys, and KSU:xnys.

 

Latest Update – 02 January 2020

Being the 1st trading day of January, it is time to re-balance our US Momentum portfolio. To begin, the S&P500 closed for the month of December well above its 200-day moving average, meaning that we will stay invested in stocks for the month ahead. We have again ranked the stocks within the S&P500, based on our measure of price momentum, and we currently hold seven of the top 10.

For today, we need to replace the three stocks in our portfolio that have dropped out of the top 10. As such, we recommend members sell the following stocks at market; ANSS:xnas, KEYS:xnys, and  STX:xnas. These are to be replaced with QRVO:xnas, TGT:xnys, and SWKS:xnas. 

 

Latest Update – 02 December 2019

Today the US Momentum strategy was rebalanced as per the monthly rebalance schedule.

To begin, the S&P500 closed for the month of well above its 200-day moving average, meaning that we will stay invested in stocks for the month ahead. We have again ranked the stocks within the S&P500, based on our measure of price momentum, and we currently hold of the top 10.

For today, we need to sell the six currently held stocks that are not within the top 10, being MKTX, TGT, EW, CPRT, DG, and PHM. These are to be replaced by LRCX, NVDA, AAPL, ANSS, TDG, and STX.

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