At
the end of each quarter I publish a complete record of all individual stock and
ETF trading recommendations made in the Momentum Strategies Report
newsletter. This report allows
subscribers to track the accuracy of the trading methods used by MSR.
Unlike
many investment advisories, I believe in maintaining a small and manageable
trading portfolio in order to maximize returns while minimizing risks. You may have noticed that most investment
newsletters maintain portfolios consisting of several – perhaps even dozens –
of stocks at any one time. Besides being
cumbersome to track and expensive to maintain, it’s usually
counterproductive. Keeping a small
number of technically and fundamentally sound trading positions – perhaps as
few as one or two at a time – is far simpler and can be just as rewarding.
Following
is the MSR Trading Portfolio recommendations for Q1 as of Mar. 31, 2013:
1/8: Bought Pulte Group (PHM) @18.99
1/10: Bought PowerShares S&P 500 High
Quality Portfolio ETF (SPHQ) @ 16.22
1/19: Took some profit in PHM @ 20.49
2/4: Bought Marathon Oil (MRO) @ 33.97
2/8: Sold remainder of PHM @ 19.47
2/19: Sold MRO @ 35.75
2/25: Sold SPHQ @ 16.56
3/5: Bought Bristol Myers Squibb (BMY) @ 37.50
3/10: Bought PowerShares S&P 500 High
Quality Portfolio ETF (SPHQ) @ 17.08
3/15: Took some profit in BMY @ 39.00
The
first quarter of 2013 was a profitable one for us as you can see. It must be pointed out that bull markets are
far more forgiving than bear markets when it comes to making trading and
investment decisions, however. Timing
isn’t as crucial for buying stocks as it is for selling short. Moreover, the volatility factor is always
less in a bull market which makes it less likely that a conservative stop loss
discipline (which MSR always employs) will be “whipsawed.”
The
trading methodology employed by MSR is based mainly on technical factors
including price pattern, internal momentum, technical market condition and
relative strength. Other factors
including earnings estimates for individual companies, relative volatility,
etc. are also part of the selection process.
Price-related considerations are always paramount as long experience
proves.
One
of the challenges that every strategies faces is how to sidestep market
declines. This is simple enough if you
employ a conservative stop-loss strategy on all your trading decisions. Amazingly, few strategists seem to have
mastered this relatively simple art.
Worse, all too many are inclined to tempt fate by going heavily short at
the first sign of weakness. Unless your
timing is nearly perfect, even a correctly bearish posture in a bear market
doesn’t always produce profits (just ask George Soros re: the 2008 credit
crisis). Experience teaches that it’s
best to maintain a heavy cash position during market downturns rather than
leveraging up on bearish trades. As the
venerable Bob Prechter has said, “There’s nothing wrong with cash. It gives you time to think.”
MSR
employs a strategy that automatically puts us into an all-cash position during
periods of market weakness. Only during
fierce bear markets when the market’s internal path of least resistance is
strongly to the downside do we employ short selling, and selectively at
that. Investment advisories that do
otherwise are more likely to lose money than preserve it.
If
you are a serious trader or investor looking for a safe, reliable approach to
market timing you may want to subscribe to the Momentum Strategies Report. As the long-term record clearly shows, our
technical discipline allows us to profit during bull markets with minimum
volatility while our drawdown/volatility factor is much lower during bear
markets than the industry average.
Subscribe
to the Momentum Strategies Report now and receive as my compliments to you the
2013 Forecast issue.
In
addition to that you’ll also receive the MSR newsletter emailed to you each
Monday, Wednesday and Friday. MSR
provides reliable forecasts and analysis of U.S. and global markets based on
internal momentum, cyclical and technical factors. Low-risk stock and ETF recommendations are
also made based on my proprietary system of selection. Specific entry and exit instructions are also
given for each recommendation.
Bonus: Subscribe to MSR today and receive a
free PDF copy of my latest book, “2014: America’s Date With Destiny.” Don’t miss what the Kress cycles have in
store for the coming years!
[For
the complete 2013 Kress cycle forecast for the U.S. stock market and the latest
newsletters, subscribe to the Momentum Strategies Report at the link below.]
Your
guide for 2013,
Clif
Droke
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