Author: Bob Freedland
Covestor model: Sustained Momentum
Disclosures: AAPL, AMZN, DIS, JWN, MORN, MSFT, PETM, VIVO, VRX, HOLX, CL
There was little change to the model during the month of July, 2012. Johnson Controls (JCI) faltered and was sold. Hologic (HOLX) rejoined the Sustained Momentum model.
The strongest stock in the model remained PetSmart (PETM) with HOLX sitting at the #10 position – most vulnerable for replacement. The other stocks include Amazon (AMZN), Nordstrom (JWN), Disney (DIS), Valean (VRX), Apple (AAPL), Morningstar (MORN), Microsoft (MSFT) and Meridian Bioscience (VIVO).
I continue to monitor the other 40 stocks that aren’t part of this model yet compete for inclusion based on their own performance.
I am hopeful that this model may over time show increased performance as long-term winners take positions in this group of ten stocks.
The model has done well for the most part, keeping up with the S&P and trailing by 3% as of August 13th. However, it will take a longer period of time to evaluate this performance in a meaningful fashion. I do know that the mechanical nature of inclusion and sale of holdings keeps me from selling stocks on market downturns or chasing winners as they climb in price.
