Another Rule, oh dear, so many rules…
Taken from Ed Croft’s Snaps 2022:
This rule is simple. “Don’t buy stocks in a bear market”. If the market index is below its 200-day moving average price - don’t buy new positions. Wait till it’s above its 200d MA - then buy high momentum stocks.
In theory that sounds very attractive and easy, but in practice it’s a lot harder.
How so?
Should I take it this means the Sector or the whole damned FTSE All-Share.
Where am I on 03/07/2022 anyway?
Sunday’s are always better to do research in a particular direction and here is one.
I go on to check for what my family holds in Stockos Quality-Value-Growth-Momentum Screen:
CAML, VTY, SHEL, ATYM, PAF, IGG, IMB, RIO, SLP, SYS1, STAN, BA., PLUS, HOC, STEM, CCC, SHOE, FORT, LOOK, BRBY, RDW, GLEN, APP, RWA, TW, WEN, GOG (now in take-over situ), MER, HSBA, and TRMR – a total of 30 qualifying stocks held in our portfolios.
Stockos Quality-Value-Growth-Momentum Screen is comprised of the QVGM 90-100 ranked companies. This could well be worth my revisiting every, what, 3 months?
In the meantime, I should watch out for Peakers in our portfolios – are they in this Screen? If so, they should be kept ?? Last week I sold one (peaking?) holding in BA to add to AAU - mere speculation on my part with the hope of quick profit on AAU and re-invest in BA. Both share prices have risen since. AAU up 4.77% and BA up a mere 1.39% so my plan’s working in the right direction. Things to consider while making such switches though are spreads and stamp duty, AAU being adversely affected by the first and BA by the second.
There are many companies in the QVGM Screen, it’s your oyster so it’s DYOR and each to their own. Let me know what you think.
