Written by Lance Roberts, Clarity Financial
Analysis and Stock Screens Exclusively For RIAPro Members
This is a special report to the public this week.
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S&P 500 Tear Sheet
Performance Analysis
Technical Composite
The technical overbought/sold gauge comprises several price indicators (RSI, Williams %R, etc.), measured using “weekly” closing price data. Readings above “80″ are considered overbought, and below “20″ is oversold.
Portfolio Positioning “Fear / Greed” Gauge
The “Fear/Greed” gauge is how individual and professional investors are “positioning” themselves in the market based on their equity exposure. From a contrarian position, the higher the allocation to equities, to more likely the market is closer to a correction than not. The gauge uses weekly closing data.
Sector Model Analysis & Risk Ranges
How To Read:
- The table compares each sector and market to the S&P 500 index on relative performance.
- The “MA XVER” is determined by whether the short-term weekly moving average crosses positively or negatively with the long-term weekly moving average.
- The risk range is a function of the month-end closing price and the “beta” of the sector or market.
- The table shows the price deviation above and below the weekly moving averages.
Weekly Stock Screens
Currently, there are 3-different stock screens for you to review. The first is S&P 500 based companies with a “Growth” focus, the second is a “Value” screen on the entire universe of stocks, and the last are stocks that are “Technically” strong and breaking above their respective 50-dma.
We have provided the yield of each security and a Piotroski Score ranking to help you find fundamentally strong companies on each screen. (For more on the Piotroski Score – read this report.)
S&P 500 Growth Screen
Low P/B, High-Value Score, High Dividend Screen
Technical Trading Screen
Portfolio / Client Update
The rally continued this past week and was doing as we expected until the President announced his contraction of COVID.
What does this mean for the election? What happens if the President is incapacitated? Ballots are already out and votes cast, so do those get recast? Does the election get postponed? Or does nothing happen?
These are all the questions we went through on Friday morning and is why we added a small market hedge to our portfolios for the next few days. There are just too many unknowns to run portfolios without some downside protection, at least for a few days.
Once things begin to clear, we can quickly remove the hedge if needed. It may drag on performance near term, but it helps us maintain some control over the portfolio for now.
As noted last week, we used the current oversold condition to “average” into some of our stronger positions. We also picked added back to our exposure gold exposures after taking profits previously.
Portfolio Changes
This past week we rebalanced portfolio risks by adding stronger names and removing some of the “weaker” players for now. Such is also part of our ongoing process to consolidate the portfolio into fewer overall holdings.
Equity Portfolio:
- Sold 100% of VIAC on the break of its stop-loss.
- +1.0% JNJ & UNH
- +1.5% GOOG
- +.5% AAPL, MSFT, ADBE, NFLX, CMCSA, T, VZ
- +1.0% GDX & IAU
- +2.0% SDS (Short-Hedge)
ETF Portfolio:
- +2% XLK
- +2% XLY
- +1.0% XLV & XLC
- +1.0% GDX & IAU
- +2.0% SDS (Short-Hedge)
We continue to look for opportunities to abate risk, add return either in appreciation or income, and protect capital.
Please don’t hesitate to contact us if you have any questions or concerns.
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