Top Ranking ETFs and Stocks

Based on 5/23/2016 data, the following ETFs and stocks flow to the top of the two ranking models shown below.  The stock screen was tightened this week as I was able to increase the F-Score from 7 to 8, thereby reducing the number of stocks from eight (8) down to three (3).  Those three are: PKG, RBA, and UHS.  The initial number of ETFs begins with over 100 and was finally narrowed down to eighteen (18).  Only RWR is under-performing SHY.

Below are the tranche and position sizing recommendations.  Don’t miss the fact that a lot of red is beginning to show up in the 13-Day Exponential Moving Average column, indicating the market is beginning to weaken.  This weakening has yet to wash into the X/O column or the “Golden Cross.”  Even though the price of a stock or ETF is below its 13-Day EMA, the 13-Day EMA values are still above the 49-Day EMAs.  That is why every “Golden Cross” (X/O column) cell is positive or coded green.

Tranche Recommendations:  Based only on the tranche recommendations, I would concentrate on investing in RBA, RSX, UHS, and ILF.  Given that two of these (RBA and UHS) are individual stocks, readers may wish to broaden their options and invest in more ETFs as recommended in the position sizing worksheet.

Position Sizing Recommendations:  An investor looking for additional diversification will find the following recommendations of interest.  Approximately $44,000 of the $100,000 portfolio is spread out over nine securities leaving over 50% of the portfolio in cash.  A reasonable portfolio may look like this.

Manual Risk Adjustments:  By rounding off many of the position sizing recommendations I used a bit more cash, but still end up with a well diversified portfolio that carries an overall risk of 5.1%.  The excess risk is modest and acceptable.

If you follow this example with these selections, just enter the total value of your portfolio in the cash position or where I initially started with $100,000.  That will get you started in seeing how your portfolio sets up compared to this example portfolio.