Sunday, August 13, 2017

MSR Performance Review

Following is the 2014-2017 weekly performance of the MSR total stock/ETF portfolio based on all buy/sell trading recommendations in the Momentum Strategies Report. The performance graph pictured here was updated as of Aug. 7, 2017.

Recommendations made in the Momentum Strategies Report are based on a combination of technical analysis, fundamental analysis, relative strength analysis and investor sentiment analysis.  Recommendations are only made in what are deemed to be high-probability, low-risk, low-volatility trading opportunities. 

All trades are initiated once a “buy” signal is confirmed by the price line of the stock or ETF in relation to its 15-day moving average, along with other pertinent technical confirmation (e.g. relative strength, internal momentum, etc.).  Conservative stop-loss recommendations are given and continually updated with each trading position.  The average length of the trades made in MSR is approximately two months, but can sometimes be longer. 

MSR rarely recommends short selling (only in confirmed bear markets) and prefers a 100% cash position whenever faced with a dearth of potential high-probability buy candidates.

In the vast majority of cases, there are only 1-2 stocks/ETFs in the model portfolio at any given time.  Rarely are more than three positions recommended at one time.  This allows us to concentrate all our attention on a few positions without being distracted by having to worry about multiple positions.  This also limits draw downs.  Most recommended positions involve low-volatility, actively traded NYSE stocks and ETFs.

The preceding graphs reflect only entry and exit signals, not profit-taking advice.

[Note: Performance graph is updated each Friday based on change in portfolio value from previous Friday.]