Introducing the Stock Picking Model
I developed a stock picking model. Go here to read about the Stock Picking Model’s indicators . This model is for trading individual stocks.
The model’s holdings for the week May 21 – 25, 2018 are:
- Amazon: long from $1574.37
- Facebook: long from $182.68
- Exxon Mobil: long from $81.3
- Alphabet (Google): long from $1066.36 (Google C class)
- Visa: long from $129.93
- Mastercard: long from $190.4
- AbbVie: long from $105.98
- Netflix: long from $324.18
- Adobe: long from $238.09
- Book Holdings: long from $2066.34
I will update the results for this model each week here on the blog.
The logic behind this Stock Picking Model is simple.
When the broad stock index’s trend is UP, buy the stocks with the strong expected earnings growth. Those stocks have the highest chance of outperforming the stock market index in an UPtrend (using the S&P 500 as the benchmark).
When the broad stock index’s trend is DOWN, shift to 100% cash. The vast majority of stocks – regardless of the company’s own earnings growth – will fall when the broad index is in a bear market or “significant correction”.