Top Names, 4/13/2023

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 4/13/2023.

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. Initially, I was using 10% trailing stops on all positions, but I extended that to 15% recently. 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 got stopped out of one name last week. I planned to add Ferrari NV (RACE) this week, but didn’t get filled on my limit order, and got distracted with a couple of other trades I was tried to place unsuccessfully, but I plan to add Novo Nordisk A/S (NVO) tomorrow. I still like RACE, but NVO looks slightly better technically.

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.

Alternatively, holding some of our bearish bets can work as a hedge against market risk too. Speaking of which, I am researching a couple of other ideas for those.