Top Names, 5/4/2023

Another big week for our top names, as we continue our core strategy.

This Week’s Top Names

This was another big week for recent Portfolio Armor top names, with Super Micro Computer Inc. ( SMCI 0.00%↑ ) up ~27% so far after a big earnings beat.

Below are Portfolio Armor’s current top ten names as of Thursday’s close.

Screen capture via Portfolio Armor on 5/4/2023.

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 didn’t get stopped out of any stocks this week, so I won’t be adding a new one on Friday Correction: I got stopped out of FSLR, for a 20.1% gain. Added RACE to replace it on Friday.

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.