Top Names, 8/24/2023

Continuing our core strategy.

A Top Names Performance Update

Before we get to this week’s top ten names, let’s look at the final, 6-month performance of our top ten names from February 23rd of this year.

Over the next six months, our top ten names from February 23rd were up 30.43%, on average, while the SPDR S&P 500 Trust ETF (SPY 0.00) was up 11.42%.

Screen capture via Portfolio Armor on 8/24/2023.

The top performer in that top names cohort was Nvidia (NVDA 0.00%↑), which just reported gangbuster earnings yesterday. I am still holding it in my portfolio, as part of our core strategy.

This Week’s Top Names

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

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%. 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 Meta Platforms (META 0.00%↑) last Friday, so I plan to add Super Micro Computer (SMCI 0.00%↑) this 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 0.33%↑). As a reminder, you can use our website to scan for optimal puts (our iPhone app is currently closed to new users).

Alternatively, holding some of our bearish bets can work as a hedge against market risk too.