This third list of stocks come from an investor who is interested in seeing where his stocks fall based on this momentum analysis.
Tranche Momentum Recommendations: Below are fifteen (15) stocks, many well known to investors who construct their portfolios using individual securities. As with my initial stock analysis, I first go through the sell signals.
- Sell holdings that are under-performing SHY. Those are: BBT, BK, XOM, and WBA.
- Sell stocks that are priced below their 195-Day EMA. Only only one stock fits this criteria and it is XOM.
Now we look for stocks to buy if we do not already hold them in the portfolio. To find these stocks we move to the right side of the table and look for tickers with high (low number) Group ratings. In addition, we seek securities that show positive Heikin-Ashi candles. The top two stocks are LOW and MSFT. Note that Lowes (LOW) is also the number one stock when it comes to performance (column 3).
Stocks with a Group rank of 4 or 5 are consider holds. AWK and LMT fit this category and both have positive H-A candles. What to do with JNJ is another question. I would continue to hold JNJ as the HA2 red candle is most likely due to the Tuesday sell-off.
Clarification Point: If you check the Group ranking there are two bits of information. Take AWK as an example where you see the value 5.11. The 5 indicates the Group rank while the 11 identifies the performance rank or what is found in column 3.
The last screen I put a security through is the PnF ratio as I want the investment to be outperforming the market (VTI). Here is the link to the LOW:VTI ratio. LOW passes the screen.