NEW: Euro Stoxx 50 reports. Free until 30NOV26. To receive these weekly reports, just send message EUROZONE in the contact form at the bottom of this page.
Best momentum stocks this week (09NOV26 – 13NOV26):
RVMD – NTRA – SN – VLO – CHEF
They are our Top 5 high-scored momentum stocks that do not show a high correlation. Our subscribers receive the complete list of high-scored stocks with low correlation (currently 30 stocks).
What we do?
We provide research for stock investors using a trend following approach.
We issue a weekly report that helps identify the most trending stocks across the board and manage the risks.
Tutorials are available on our YouTube channel (subtitles in 15 major languages), and other social media, see links above.
Who we are:
This service is managed by Daniel Vermeersch, a former quantitative fund developer and manager for several banking institutions.
Five pillars of the momentum investor:
1. Introduce heterogeneity in your investment universe to increase your chances of finding an upward trend somewhere. We track 400 US-listed stocks across 100 industries or subindustries. About 20% are ADRs (non-US companies listed on US markets).
2. Define a measure of price momentum. We calculate our own metric that considers both the intensity and stability of trends. Our key ingredients are excess returns normalized by their volatility. Ranking all stocks according to this measure allows us to assign a score.
3. Calculate momentum over 2 timeframes. We calculate a fast score based on the short term, and a slow score based on the long term. When both scores are high enough, a strong trend is likely in place. Conversely, when the scores conflict, a sideways corrective movement is probable. A composite score is computed. It is the key ingredient of our momentum analysis.
4. Analyze the correlation matrix of the stocks to hold in your portfolio. We monitor this matrix and don’t recommend holding stocks that are too correlated, since they move together and increase your portfolio’s risk.
5. Always keep an eye on your portfolio’s beta. It’s calculated as the weighted average of the stocks’ betas. A beta that’s too high can lead to significant losses during a market correction, while a beta that’s too low may make your portfolio too sluggish and cause you to miss many opportunities. We suggest keeping it between 0.7 and 1.3 depending on market conditions.
Sub-sample report (02NOV26):
Sector monitoring:
Each week the correlation network of a sector is displayed. X-axis: the beta, Y-axis: the composite momentum score.
Week 09NOV26 – Materials –
Week 02NOV26 – Healthcare-
Week 26OCT26 -Energy-
