Top Names, 2/16/2023

Continuing our core strategy.

This Week’s Top Names

These were Portfolio Armor’s top ten names as of Thursday’s close:

Screen capture via Portfolio Armor on 2/16/2023.

If you’re starting our core strategy now, you’ll want to buy equal dollar amounts of each at or near these prices, if possible, on Friday, and then enter trailing stops on each of them. Up until now, I’ve been using 10% trailing stops on all positions; I still think this makes sense for most positions, but going forward I will use a 15% trailing stop next time I buy a leveraged ETF, like KOLD (#2 above). As you get stopped out of positions, you’ll add new ones from the current top ten names then.

In my case, I am already running this strategy, and have one name to replace this week, so tomorrow I plan to buy Prothena Corp. Plc (PRTA).

If you’re not buying round lots of each of these positions, it won’t be cost effective to hedge them individually, but you can hedge market risk by buying optimal puts on an index ETF such as the SPDR S&P 500 Trust (SPY). As a reminder, you can use our website or our iPhone app to scan for optimal puts.